Mohamed Farid, Chairperson of the Financial Regulatory Authority (FRA), has announced that a study is underway to facilitate the use of artificial intelligence (AI) algorithms in insurance and investment fund activities. These technologies will enable more efficient comparisons between investment fund documents and alternative investment options within these sectors. Speaking at the annual conference of the Egyptian Society of Investment Professionals, Farid emphasized FRA's commitment to collaborating with industry stakeholders to enhance professional expertise and maintain the competitiveness of Egypt's non-banking financial markets. He also discussed the possibility of partnering with the Egyptian Society of Investment Professionals to launch a university competition focused on sustainability reports, affirming FRA's readiness to evaluate and compare participants' submissions. Farid underscored the importance of companies integrating environmental, climate, and sustainability factors into their business strategies. He stressed that governance and sustainability practices—particularly in preparing and publishing sustainability disclosure reports and assessing the financial impacts of environmental policies—are no longer optional but essential. These measures, he noted, are crucial for corporate growth, attracting international financing, and strengthening Egypt's position in global investment markets. He also urged universities and professional organizations to create more competitions that encourage best environmental practices and reinforce adherence to disclosure and governance standards. Accelerating digital transformation and expanding the role of the non-banking financial sector in sustainability initiatives are key priorities for FRA, according to Farid. He also highlighted FRA's progress in regulating AI-driven financial advisory services. He noted that FRA had committed to introducing regulatory guidelines for the Advisor for Investment – Robo program, Egypt's first AI-powered automated financial advisory system, during last year's CFA Society conference. FRA has since fulfilled this commitment, issuing Decision No. 57 of 2024, which governs AI-based portfolio management and rebalancing. Farid emphasized that embracing technology is essential for progress, adding that capacity building is now more accessible with the wealth of available information. However, he cautioned that education should be viewed as a means to an end rather than an end in itself. On market development, Farid revealed that FRA has received requests to approve new metal investment funds following the successful launch of Egypt's first three gold investment funds. He acknowledged that while significant strides have been made, further efforts are needed to develop capital markets and raise awareness about the value of investment and cumulative savings. Strengthening these areas, he said, will unlock greater financial potential and expand the base of beneficiaries in Egypt's investment ecosystem.
