Cairo: The Financial Regulatory Authority (FRA) has announced an increase in the investment cap for insurance and reinsurance companies in commodity and metal investment fund certificates. The cap has been raised to 10 percent, up from the previous 5 percent. This initiative is designed to offer a broader range of investment opportunities for insurers and to enhance market liquidity.

According to State Information Service Egypt, the updated guidelines are outlined under Resolution No. 123 of 2025, issued by FRA Chairman Mohamed Farid. The resolution stipulates that the investment in a single fund should not surpass 5 percent of the insurer’s total allocated investment funds or 15 percent of the fund’s net asset value, whichever is less. The new rules amend FRA Resolution No. 2 of 2025 and are applicable to investments in commodity and metal funds or other metal-backed instruments traded on the Egyptian Exchange.

This decision is part of a broader strategy to deepen the market, enhance stability, and bolster
investor confidence. The reforms aim to strike a balance between maximizing returns and protecting policyholders’ rights. Recently, regulations have been introduced requiring private insurance funds to allocate part of their capital to open-ended funds that focus on stocks listed on the Egyptian Exchange, managed by FRA-licensed professionals.

These changes are being implemented under the Unified Insurance Law No. 155 of 2024. This comprehensive legislation replaces four previous laws and empowers the FRA board to establish policies and procedures for the sector. The reforms support Egypt’s plans to digitize financial services, promote financial technology, and increase insurance coverage.