Arab Finance: The Financial Regulatory Authority (FRA) has extended the suspension of incorporation applications and preliminary approvals for companies seeking licenses to operate in microfinance or traditional consumer finance, as per a statement.
The authority also decided to suspend the acceptance of microfinance license applications from associations and civil society organizations for a renewable period of one year, under resolution No. 237 of 2025.
The move comes as part of the FRA’s ongoing efforts to ensure financial stability across markets and non-banking financial institutions, while strengthening their role in supporting the national economy and addressing the needs of individuals.
The decision follows a significant surge in the number of new licenses granted to companies and entities in the consumer and microfinance sectors prior to the issuance of resolution No. 184 of 2024, which initially suspended new incorporation applications.
The FRA said the extension will allow time to assess the financial solvency of existing companies and service providers before considering additional entrants to the market.
The decision excludes companies or entities seeking to operate using financial technology in line with the law regulating and developing the use of financial technology in non-banking financial activities, issued under Law No. 5 of 2022.
According to the FRA, the number of beneficiaries of microfinance services has reached around 3.6 million, with total financing amounting to EGP 56.2 billion.
Consumer finance beneficiaries have risen to about 7 million, with total financing of EGP 56.7 billion.