New amendments by Egypt’s Financial Regulatory Authority aim to address the inadequate adherence to corporate governance principles

Late August, Egypt’s Financial Regulatory Authority (FRA) amended the Authority’s decision No. 1 for 2017 regarding the standards for financial evaluation of enterprises. The new changes include methodologies, models and standards for start-ups, to encourage clearer valuation by investors and greater access to funding by start-up companies. Among the considerations for evaluating start-ups are the nature of the company’s activity and sector, the qualifications of its team, analysis of its strengths and weaknesses, review of the opportunities that the company may face and the extent of its adherence to governance principles. Commitment to governance principles will also be highlighted in the amendments to the Capital Market Law No. 95 of 1992, as ordered by Egypt’s Prime Minister in a recent decision.