Egypt’s Financial Regulatory Authority (FRA) has approved live testing for the first two projects under its fintech regulatory sandbox, FRA-Sandbox, marking a milestone in the initiative’s first year of operation.
The two projects can run live testing for an initial three-month period, extendable in line with operating plans agreed with the participating companies and subject to approval from the FRA committee overseeing fintech applications in non-banking financial activities.
The first project, developed by GIG Egypt, replaces traditional on-site vehicle inspections with a remote inspection and damage assessment solution for comprehensive motor insurance, aimed at speeding up claims processing and improving transparency, accuracy, and cost efficiency.
The second, developed by Lumin Soft in partnership with Azimut, uses electronic passports to verify digital identities, letting foreign nationals authenticate themselves via NFC-enabled mobile devices under International Civil Aviation Organization standards, opening access to insurance products, investment platforms, and other non-banking financial services in Egypt.
FRA Chairman Islam Azzam welcomed the growing collaboration between the sandbox and companies developing technology solutions for the non-banking financial sector.
He said the FRA created the sandbox a year ago as an open, flexible, and secure environment for testing innovative solutions while maintaining regulatory compliance, and that the authority aims to grow it into a leading regional hub for financial innovation.
Ahmed Khalifa, Executive Director of FRA-Sandbox, said the shift to live testing marks a new phase following the initiative’s first year, one expected to encourage investors and innovators to accelerate digital transformation and financial inclusion.
He noted that the sandbox has received 49 project applications to date, of which seven have secured preliminary approval, including the two now undergoing live testing, alongside regulatory guidance provided to 45 entities assessing their solutions’ feasibility and compliance.
GIG Egypt’s Regional Ties
GIG Egypt operates under Gulf Insurance Group, a Kuwait-listed insurer among the largest and most diversified in the Middle East and North Africa.
The group’s regional arm, GIG Gulf, formed from its 2020 acquisition of AXA’s Gulf operations, ranks among the UAE’s largest insurers, giving this Egyptian sandbox project an indirect but genuine connection to the UAE market.
Featured image: Edited by Fintech News UAE based on an image by the Financial Regulatory Authority (FRA) via its website.
