Egypt’s Financial Regulatory Authority (FRA), chaired by Islam Azzam, has approved the launch of live testing for the first two projects under its fintech regulatory sandbox, FRA-Sandbox, marking a significant milestone in the initiative’s first year of operation.
The two projects have been granted approval to conduct live testing for an initial three-month period, which may be extended in accordance with operating plans agreed with the participating companies and subject to approval by the FRA committee overseeing fintech applications in non-banking financial activities.
The first project, developed by GIG Egypt, introduces a remote inspection and damage assessment solution for comprehensive motor insurance. The technology replaces traditional on-site inspections with remote assessments, helping to accelerate insurance procedures and claims processing, improve transparency and accuracy, reduce inspection costs, and enhance the overall customer experience.
The second project, developed by Lumin Soft in partnership with Azimut, uses electronic passports (ePassports) to create and verify digital identities.
The solution enables foreign nationals to verify their identities using mobile devices equipped with near-field communication (NFC) technology, which reads and authenticates electronic passports in accordance with the International Civil Aviation Organization’s (ICAO) Public Key Directory (PKD) standards. The project is designed to facilitate non-Egyptians’ access to insurance products, investment platforms, and other non-banking financial services in Egypt.
Islam Azzam welcomed the growing collaboration between the FRA’s regulatory sandbox and companies developing innovative technology solutions for the non-banking financial sector.
He said the FRA established the sandbox a year ago as an open, flexible, and secure environment that enables market participants and entrepreneurs to test and refine innovative solutions while ensuring compliance with legislative and regulatory requirements.
Azzam added that the authority aims to develop the sandbox into a leading regional hub for financial innovation and strengthen the international competitiveness of Egypt’s non-banking financial sector. The initiative brings together technology innovators, startups, major investors, research centres, and universities, while providing regulatory guidance, raising awareness of relevant legislation, facilitating knowledge exchange, and organising innovation initiatives and competitions.
He stressed that the FRA views financial technology as a key driver for enabling companies to develop products and services that respond to evolving economic and social needs, while maintaining robust safeguards to protect customers, ensure data security, and preserve market stability.
Ahmed Khalifa, Executive Director of the FRA-Sandbox, said the launch of live testing marks a new phase for the initiative following its first year of operation and is expected to encourage investors and innovators to help accelerate digital transformation and expand sustainable financial inclusion.
Khalifa said the sandbox has received 49 project applications to date, of which seven have obtained preliminary approval, including the two projects now undergoing live testing. The initiative has also provided regulatory guidance to 45 entities, helping them assess the feasibility of their solutions and their compliance with regulatory requirements before broader market deployment.
In addition, the sandbox has organised a series of workshops and seminars to raise awareness of cybersecurity best practices and the digital transformation of financial services.
Khalifa added that the FRA will soon hold an event to review the sandbox’s achievements during its first year as part of its ongoing engagement with experts, private-sector institutions, and start-ups operating in sectors regulated by the authority.
