EGYPT: FRA Issues a Decision Amending the Controls Regulating the Activity of Direct Investment

Thursday January 4 2024

On 26^th December 2023, Financial Regulatory Authority (FRA) announced the decision on amending controls regulating activity of direct investment companies that are practiced through joint-stock companies or partnerships limited by shares and to encourage the presence of many Companies that practice the activity of direct investment companies in the Egyptian market, the share of the managing shareholder shall not be less than half a percent of the company’s issued capital. The company’s capital shall be offered privately to qualified investors including individuals, legal persons and banking and non-banking financial institution

The amendments included a requirement for direct investment companies to invest their funds in securities listed or not on Egyptian stock exchanges, in order to ensure directing the investments of their funds in companies operating in Egypt and to contribute to providing the necessary financing for companies to continue their activities and work in a way that maximizes the benefit from pumping direct investment companies’ funds into the Egyptian economy.

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