Khalil el bawab praised the Financial Regulatory
Authority’s decision to set a mi
nimum of 5% for private insurance funds to invest in equity
funds, highlighting the many benefits this decision brings:
Firstly, the decision enhances the diversification of private insurance funds’ investments,
reducing the risks of focusing solely on fixed-income instruments, and allows the market to align
with global trends in pension fund investments, which reached around 42% in 2023. Secondly,
the decision helps enhance the Egyptian stock exchange by attracting additional long-term
institutional investments. Moreover, this decision will enable private insurance funds to benefit
from the high returns of stocks in the long term, thereby strengthening their ability to meet their
obligations to members.
Additionally, countries with a younger demographic composition, such as Egypt, are
increasingly directing their investments toward long-term channels like equities. This supports
the national economy by promoting investments in local companies to foster their growth and
create new job opportunities.
In this context, Elbawab considered this step an important measure to complement the ongoing
efforts of the FRA in adding depth to financial markets, enhancing the efficiency of legislative
frameworks, and adapting to new developments, all of which benefit the market as a whole
