Egypt: Regulator issues rules for Shariah-compliant operations
Source: Middle East Insurance Review | Jun 2026
The Financial Regulatory Authority (FRA) has issued a decision regarding the rules, standards and controls for companies licensed to practice takaful business, in a step aimed at stimulating the Egyptian market and improving operational efficiency.
The decision establishes a new regulatory framework for takaful in Egypt, which, for the first time, includes an integrated model combining the agency (wakala) and Mudarabah (profit-sharing) systems in managing the takaful account and investment activities, thus giving companies greater flexibility in managing operations and achieving a balance between the interests of shareholders and subscribers.
FRA Chairman Dr Islam Azzam said that the decision aims to modernise the regulatory framework, expand the takaful market and boost the performance of companies through new controls that encourage growth. He said that the new regulations form part of the FRA’s broader strategy to stimulate the takaful insurance market and strengthen its ability to attract new investors and clients.
He explained that the decision applies to takaful companies defined as entities licensed to manage insurance operations and invest participants’ funds in return for management fees, a share of investment returns, or a combination of both, while maintaining the financial solvency of participants’ funds. M