The Financial Regulatory Authority (FRA), headed by Dr. Islam Azzam, participated in the 30th edition of the Cairo International Technology Exhibition and Conference for the Middle East and Africa (Cairo ICT 2026), which kicked off on Saturday at the Egypt International Exhibition Center in New Cairo under the theme “AI in Action.” The event was attended by Prime Minister Dr. Mostafa Madbouly.
During his tour of the exhibition, Prime Minister Mostafa Madbouly visited the FRA pavilion, where Dr. Islam Azzam outlined the Authority’s latest initiatives to advance secure digital transformation and integrate financial technology across non-banking financial activities.
Azzam highlighted the FRA’s pioneering role in establishing a comprehensive legislative and regulatory framework for financial technology, following the issuance of Law No. 5 of 2022 regulating and developing the use of financial technology in non-banking financial activities.
He reviewed a series of regulatory decisions designed to strengthen the infrastructure supporting fintech adoption. These include regulations governing electronic Know Your Customer (e-KYC) procedures, the conclusion, storage, and retrieval of digital contracts, and the establishment and management of digital records.
The framework also addresses digital identity requirements, corporate governance, risk management, data protection, and information security, while encouraging the integration of financial technology into capital market activities, investment funds, insurance, and non-banking financing services.
Azzam explained that these regulatory measures have enabled companies operating under the FRA’s supervision to provide financial services through secure and reliable digital channels. They also require regulated entities to develop integrated technological infrastructure and information systems to ensure data protection, database integrity, and effective management of technological risks.
The regulatory framework further establishes requirements for digital identity verification, digital contracts, and outsourcing records, while obliging companies to adopt specialized information security policies and implement cybersecurity protection measures in line with the latest standards.
These requirements include conducting periodic penetration tests, submitting regular reports to the FRA, and maintaining insurance coverage against cybersecurity risks as one of the conditions for maintaining regulatory licensing.
Digital Transactions Record Significant Growth
The FRA Chairman noted that these efforts have contributed to a substantial acceleration in fintech adoption across capital markets, insurance, and financing activities, particularly during 2026.
By the end of October 2026, the Authority had recorded more than 1.727 million digital verification transactions, compared with approximately 354,000 transactions by the end of 2025.
The number of digital contracts also reached approximately 862,000, up significantly from around 190,000 contracts recorded at the end of 2025.
FRA Sandbox Supports Financial Innovation
Azzam also highlighted the role of the Financial Regulatory Authority’s Regulatory Sandbox (FRA Sandbox) in providing a secure environment for testing innovative technological solutions before their commercial launch.
To date, the sandbox has received 67 projects and provided 67 regulatory guidance services. A total of 11 projects have received preliminary acceptance, with two projects advancing to the actual testing phase.
In parallel, the FRA has implemented specialized training programs to strengthen the capabilities of professionals working across non-banking financial activities, particularly in cybersecurity and financial technology.
The Chairman also discussed recent technological developments aimed at stimulating investment under the FRA’s regulatory supervision, particularly digital platforms for investing in real estate investment fund units.
He described these platforms as among the latest applications of financial technology, requiring advanced and comprehensive insurance solutions covering transactions between investment funds, platform operators, and investors.
FRA Explores AI Applications to Enhance Financial Sector Efficiency
With this year’s Cairo ICT focusing on practical artificial intelligence applications and their role in improving services, institutional efficiency, and productivity, Azzam revealed that the Authority is studying a package of regulatory and technological measures to expand the use of AI across non-banking financial activities.
These initiatives include leveraging artificial intelligence for data analysis and deriving market indicators, developing early-warning mechanisms for risk detection, and examining the establishment of a centralized fraud prevention system that would facilitate information sharing on fraud cases across different sectors.
The plans also include further digitalization of administrative procedures.
Azzam explained that these developments will build on an electronic connectivity project linking the FRA with all companies and entities operating under its supervision. The project is expected to provide daily and real-time data from various financial activities, enabling advanced analysis using artificial intelligence technologies.
Selected analytical findings will also be made available to market participants, helping companies make more informed and efficient decisions and develop insurance and financing products that better address customers’ actual needs.
Financial Sector Federations Participate in FRA Pavilion
This year’s FRA pavilion at Cairo ICT 2026 features the participation of several industry federations, including the Egyptian Insurance Federation, the Egyptian Mortgage Finance Federation, the Federation of Micro, Small and Medium Enterprises Financing, the Consumer Finance Federation, the Factoring Federation, the Financial Leasing Federation, and the Egyptian Securities Federation.
The pavilion provides visitors with an opportunity to explore non-banking financial activities and learn how financial technology can support the development of products and services.
Visitors can also engage directly with representatives of the FRA’s Central Administration for Financial Awareness and Literacy, access educational publications designed for both adults and children as part of the “I Invest” initiative, and participate in interactive activities.
These initiatives aim to raise financial and investment awareness among citizens of all age groups, highlighting secure investment opportunities under the FRA’s supervision, as well as the rights and obligations of financial market participants.
