The Financial Regulatory Authority (FRA) has issued Decision No. 1 of 2026, raising the maximum financing limit for microenterprise funding provided by companies, associations, and civil society institutions from EGP 266,000 to EGP 292,000. In parallel, the Authority issued Decision No. 2 of 2026, increasing the maximum insurance coverage for microinsurance activities to EGP 390,000, up from about EGP 312,500 previously.
In a statement released on Monday, the FRA said the two decisions aim to enhance the capacity of microenterprises to grow and achieve sustainability by expanding access to financing, while also strengthening insurance protection and empowerment for beneficiaries.
Mohamed Farid, Chairperson of the FRA, said the measures are part of the Authority’s broader efforts to develop a regulatory environment that supports microenterprise growth and enables owners to access financing and insurance solutions aligned with their actual needs.
He pointed to indicators showing the growing role of the sector in supporting economic activity, noting that the value of non-banking finance directed to micro, small, and medium-sized enterprises reached around EGP 95.7bn in 2025, marking a growth rate of 12.1%. The number of beneficiaries also rose to approximately 3.1 million, reflecting the expanding reach of non-banking financial services.
Farid added that raising the maximum insurance coverage enhances the level of protection available to beneficiaries and provides a more appropriate insurance umbrella that reflects the nature of risks faced by microenterprise owners, supporting their stability and ability to continue and expand their activities.
He said the move is also consistent with the Authority’s approach to improving the efficiency of the non-banking financial services system and offering more suitable financing and insurance solutions for economically vulnerable segments, including workshop owners, artisans, small trades, and home-based enterprises. These measures provide affordable protection that helps mitigate the impact of unexpected shocks on income and business continuity.
Separately, the FRA issued Decision No. 4 of 2026, extending by an additional six months the deadline granted to companies operating in insurance and reinsurance brokerage, loss adjusting and damage assessment, and insurance consultancy expertise to increase their capital.
The Authority had previously decided in January 2025 to require companies operating in insurance and reinsurance brokerage, loss adjusting and damage assessment, insurance consultancy, and actuarial expertise to raise their capital within one year.
Under the new decision, affected companies must submit a detailed timeline outlining the stages of capital increases to the FRA within one month from the decision’s publication. The decision also prohibits the distribution of cash dividends to shareholders before meeting minimum capital requirements, unless prior no-objection is obtained from the Authority.
The extension aims to give companies sufficient time to comply with capital requirements, supporting stronger financial positions and greater sector resilience.
Insurance and reinsurance brokerage companies are required to raise their capital to a minimum of EGP 5m, while risk assessment expertise firms, loss adjusting and damage assessment companies, insurance consultancy expertise firms, and actuarial expertise companies must increase their capital to at least EGP 3m by June 2026.
