Arab Finance: The Financial Regulatory Authority (FRA), chaired by Islam Azzam, issued a decision for the first time regulating the establishment and operation of hedge funds in Egypt, according to a statement.

These funds will be allowed to invest in a broad range of assets and instruments, including equities, debt instruments, financial derivatives such as futures, forwards, and exchange-traded options, as well as securities and other financial instruments with high trading volumes. The framework also permits short selling on the Egyptian Exchange (EGX).

Azzam said the move represents a key milestone following recent amendments to the executive regulations of the Capital Market Law, particularly as the EGX seeks to expand its investor base and deepen market activity.

He noted that hedge funds are expected to increase investment and operational flexibility for investment funds while supporting the development and liquidity of Egypt’s derivatives market.

The new framework could also attract additional local and foreign investors by offering diversified investment strategies to generate higher returns, the chairman added.