In a significant call for strengthening corporate governance across Egypt’s financial ecosystem, Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority (FRA), stressed that governance is not just a compliance tool, but a strategic catalyst for business growth and sustainability. The session was moderated by Ghada Hammouda, Chief Sustainability and Marketing Officer at Qalaa Holdings.
Speaking at a high-level panel discussion hosted by the American Chamber of Commerce in Egypt under the theme “Corporate Governance as a Catalyst for Business Growth,” Dr. Farid highlighted Egypt’s progressive trajectory in institutional governance over the past two decades.
The session featured a distinguished panel of experts in law, finance, and sustainable development, including Dr. Hany Sarie-Eldin, founder of Sarie-Eldin & Partners Legal Advisors; Reem El Saadi, Director of SME Finance and Development at the European Bank for Reconstruction and Development (EBRD); Dr. Sherifa Sherif, Executive Director of the National Institute for Governance and Sustainable Development; and Ahmed El Gendy, Managing Partner of Tanmeya Capital Ventures.
From Policy to Practice: A Governance Roadmap
Dr. Farid traced the evolution of corporate governance in Egypt, noting that efforts began in earnest in 2004 with the adoption of OECD principles, leading to the release of Egypt’s first Corporate Governance Code in 2005 via the Institute of Directors.
“Governance must be viewed as a strategic enabler—not a bureaucratic hurdle,” said Dr. Farid. “It drives institutional performance, transparency, and long-term resilience.”
He emphasized that the FRA has expanded governance mandates beyond publicly listed companies to include over 3,500 non-banking financial institutions, including private insurance funds, microfinance firms, and SME financing entities.
Enforcing Diversity and Transparency
As part of FRA’s reform agenda, Dr. Farid outlined a set of key governance interventions:
- Mandatory female representation on corporate boards.
- A national database of qualified female board candidates, developed in collaboration with the American University in Cairo.
- Enforcement of ESG (Environmental, Social, and Governance) disclosures and TCFD (Task Force on Climate-Related Financial Disclosures) reporting for regulated entities.
To ensure disclosure quality, the FRA is currently developing a unified evaluation and classification framework to assess sustainability reports and promote transparency.
Green Finance and Carbon Market Innovation
In line with Egypt’s push for a green economy, Dr. Farid announced that the FRA has introduced:
- A clear taxonomy for green bonds, sustainability-linked bonds, and the establishment of standards for green investment funds.
- Regulatory pathways for ESG rating agencies to operate within Egypt.
Among the most notable developments is the launch of Egypt’s first regulated voluntary carbon market, aimed at supporting emissions-reduction projects. Through a dedicated digital platform, project developers can issue and trade verified carbon credits—attracting both local and global investors, while contributing to Egypt’s net-zero goals.
Next Steps: Toward Global Reporting Standards
Looking ahead, Dr. Farid confirmed that Egypt will soon engage in stakeholder consultations to implement the IFRS S1 and S2 sustainability reporting standards, ensuring the process is tailored to local business realities through the principle of proportionality.
He called on organizations like the American Chamber of Commerce in Egypt to actively participate in shaping a comprehensive national roadmap that balances global compliance with domestic priorities.
