Egypt’s Financial Regulatory Authority Issues Country’s First License for Microfinance Activities Based on Wakala 

Egypt’s Financial Regulatory Authority Issues Country’s First License for Microfinance Activities Based on Wakala 

https://islamicmarkets.com/articles/egypt-s-financial-regulatory-authority-issues-country-s-first-license-for-microfinance
Copy URL

The Financial Regulatory Authority (FRA) of Egypt has granted its first licence to a financial institution to finance micro firms in the non-banking financial sector through the Wakala investment structure, according to the authority’s Chairperson Mohamed Farid on the 30th of August 2022.

Why it Matters?

The new licence, issued to the Egyptian Microfinance Company, Maksab, gives the existing financing instruments on the local market a fresh perspective in terms of modernising the Wakala investment structure. The issuance is part of ongoing efforts to maximise the nonbank financial sector's development impact across all activities, which would make it easier for businesses engaged in a variety of activities and productive sectors to acquire financing servic...