Capital market achieves 64.1% growth in 2023: FRA

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The capital market experienced significant growth in 2023, with a 64.1% increase in securities issuances in the primary market, reaching EGP 601bn. Securitization bonds also saw a substantial rise in value by 96%, totaling EGP 87bn, and market capitalization grew by 79%, achieving EGP 1.7trn by year-end.

Eslam Azzam, Vice Chairperson of the Financial Regulatory Authority (FRA), remarked on the positive impact of the Authority’s efforts and decisions in 2023 on the non-banking financial market’s performance.

He noted that the enhancement of supervisory and service frameworks, professional efficiency, financial and insurance coverage levels, and the acceleration of non-banking financial transactions’ digitization through a finalized regulatory framework for financial technology significantly contributed to the market’s rapid development.

Azzam emphasized the importance of collaboration with development institutions to boost the efficiency and competitiveness of non-banking financial markets. He underlined that technical cooperation, capability development, and knowledge transfer are vital for strategic partnerships with these institutions.

At the Cairo Financial Summit, organized by the German Agency for International Cooperation with the theme “Empowering Egyptian Enterprises,” Azzam showcased the Authority’s multifaceted cooperation with the Agency, focusing on strategies to enhance supervisory frameworks and develop all non-banking financial markets while ensuring financial stability.

Excluding investment-linked policy premiums and money formation contract premiums, total insurance premiums during fiscal 2023 rose to EGP 61.4bn, a 25.6% increase from EGP 48.9bn the previous year.

Financial leasing contracts grew by 33.7%, while discounted securities saw a 4% growth rate. Consumer financing, the latest non-banking financial activity under the Authority’s supervision per Law No. 18 of 2020, surged by 58.7%. Financing for medium, small, and micro-enterprises also increased by 41.7%.