The Financial Regulatory Authority, headed by Dr. Islam Azzam, held the first meeting of the Advisory Committee for the Regulatory Sandbox for Financial Technology Applications (FRA-Sandbox), about a year after the launch of the regulatory sandbox, in a step that reflects the Authority’s commitment to promoting innovation and developing the legislative and regulatory environment that supports the use of financial technology in non-banking financial activities.

The Regulatory Laboratory Advisory Committee includes a select group of experts and specialists, chaired by Dr. Islam Azzam, Chairman of the Financial Regulatory Authority. Eng. Ahmed Khalifa, Executive Director of the Regulatory Laboratory, serves as Vice Chairman of the Committee, with the following members: Mr. Alaa El-Zohairy, Chairman of the Federation of Egyptian Insurance Companies and Managing Director of GIG Insurance Company; Eng. Ibrahim Sarhan, Chairman and Managing Director of e-Finance Company; Dr. Ayman Ismail, Abdul Latif Jameel Chair Professor of Entrepreneurship at the Onsi Sawiris School of Business at the American University in Cairo and Founder and Director of AUC Venture Lab; Ms. Karima El-Hakim, Executive Partner in Egypt and Africa for Plug and Play International; Eng. Sherif Shaltout, Regional Director for the Middle East and North Africa at Liquid C2; and Dr. Mohamed Hegazy, Consultant in Digital Legislation and Intellectual Property.

Dr. Islam Azzam stressed that the formation of the advisory committee comes within the framework of the Authority’s keenness to benefit from specialized local and international expertise to support the path of financial innovation, and to develop the regulatory laboratory in accordance with best global practices, which enhances Egypt’s position as a regional center for financial technology and development in non-banking financial activities.

He added that the regulatory laboratory is one of the modern regulatory tools that allows startups and financial institutions to test new digital solutions and products in a safe and flexible environment under regulatory supervision, and today, less than a year after its launch, it has become an integrated platform that achieves a balance between encouraging innovation, protecting customers, and stabilizing markets.

The meeting reviewed the Regulatory Laboratory's key achievements during its first year. Engineer Ahmed Khalifa explained that five preliminary approvals were granted for innovative financial technology projects to be tested within the regulatory environment overseen by the Authority. He added that 13 Memoranda of Understanding were signed with various market participants, and regulatory guidance was provided to 37 entities. This contributes to evaluating the feasibility of these technological solutions and their compliance with regulatory frameworks before wider market rollout.

He added that the procedures for applying to the regulatory sandbox begin with submitting a project that is characterized by original innovation in the non-banking financial sector in Egypt, and that is ready for implementation, and contributes to improving market efficiency and achieving greater benefits for the consumer in light of a feasibility study and an effective plan. Then the application is subject to review, and goes through the testing phase, leading to the evaluation of the project with final approval and adoption, or testing for a longer period, or rejection.

The meeting reviewed the main objectives of the Advisory Committee, which include supporting the creation of a stimulating environment for the development of financial technology projects in the non-banking financial activities sector, in accordance with global standards that attract outstanding local and international initiatives, and enhancing cooperation to expand the scope of the laboratory’s reach and work, especially at the level of the African continent, in addition to providing strategic advice on regulatory frameworks and policies and supporting knowledge exchange and capacity building within the Egyptian financial technology system.

The meeting addressed the priorities of the Regulatory Laboratory’s work during the next phase, where the committee members agreed to expand the base of companies and projects benefiting from the laboratory’s services, support solutions related to artificial intelligence, financial technology and digital finance, enhance cooperation with regulatory bodies and international institutions, as well as develop mechanisms for measuring the economic and social impact of financial innovation.

The committee members stressed the importance of continuing to develop the regulatory environment that supports innovation, and working to enhance cooperation between regulatory bodies, private sector institutions and startups in the sectors under the authority’s supervision, in order to support the state’s objectives related to sustainable economic development and financial inclusion.