CAIRO - 19 April 2026: Egypt’s Financial Regulatory Authority (FRA) is preparing to introduce its first license for the use of a “digital identity,” or “digital passport,” in a move aimed at accelerating digital transformation across non-banking financial services.
 
Ahmed Khalifa, Head of the FRA’s Technology Lab, said the digital passport is not related to a traditional travel document, but instead represents a secure, verified digital identity for foreign users. The system enables electronic verification of personal data without the need for physical documentation.
 
The initiative is expected to facilitate foreign investors’ entry into Egypt’s financial market, particularly in investment funds, by streamlining onboarding procedures and reducing the administrative burden associated with identity verification.
 
Khalifa described the move as a structural shift in how identity is integrated into non-banking financial activities, including insurance, microfinance, and asset management. By relying on authenticated digital data instead of paper-based records, the system is set to improve efficiency across the financial ecosystem.
 
The framework will also support faster contract execution and transaction processing—especially for international clients—allowing firms to provide services remotely while improving turnaround times and lowering costs.
 
He added that the digital passport will simplify Know Your Customer (KYC) procedures, particularly in financing and insurance, enhancing user experience and reducing operational expenses for companies.
 
The announcement comes as part of the FRA’s broader push to support innovation through its regulatory sandbox. Khalifa revealed that the authority has received 30 applications to join the sandbox, with four companies already selected to operate in areas such as fintech, insurance, and microfinance.
 
Among the solutions currently under development is a remote vehicle inspection model using video technology, enabling damage assessments without requiring an on-site expert. The model is expected to speed up procedures and reduce costs, particularly in minor cases, and will be granted a usage permit due to its connection to insurance activities.
 
Khalifa also highlighted a digital financial brokerage model in the microfinance sector, an activity that is legally recognized but not yet operational. The FRA is currently working on establishing the regulatory framework in preparation for issuing licenses once testing is completed.
 
Another model involves a digital insurance brokerage platform that allows users to compare and purchase insurance policies online, helping customers choose the most suitable coverage options more efficiently.
 
The planned rollout reflects the FRA’s ongoing efforts to modernize Egypt’s non-banking financial sector and enhance its attractiveness to both domestic and international investors.