FRA wants to make it easier to establish investment and VC funds: The Financial Regulatory Authority (FRA) is looking to simplify the process for setting up private equity and venture capital funds by amending the Capital Market Law, FRA head Mohamed Farid told the Senate on Sunday. The move is part of broader efforts to attract more investors and deepen Egypt’s capital markets.

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What’s changing? The proposed amendments would allow funds to be established under any type of corporate structure approved by the FRA board. This would provide fund managers with greater flexibility in structuring their investments, helping stimulate growth in venture capital and private equity funds, Farid said.

The rationale: The amendments are aimed at attracting both local and foreign investors by creating a more investor-friendly regulatory environment, Farid explained. “Foreign investors will not come to the Egyptian market unless they see that Egyptian investors are investing a lot and have trust in the country’s legislation,” he said. Farid also noted that expanding venture capital activity will contribute to economic growth and generate more tax revenue for state coffers.

AND- No need for new courts: Farid rejected a proposal to set up a specialized court to resolve capital market disputes, arguing that Egypt’s existing economic courts are well-equipped to handle such cases. He added that the government could look into expanding economic court branches if necessary, while also referring to the role of the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes in resolving disputes before they reach courtrooms.

Remember: The FRA amended the rules governing private ins. funds and the caps on their investments last month in a move aimed at helping them diversify their investment portfolios.

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