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A Year-End Insight into Energy & Climate Law
This special edition of Law Update, marking Al Tamimi & Company’s 35th anniversary, explores the evolving legal landscape of energy and climate law across the region.
As the Middle East prioritises sustainable growth, this edition examines key developments shaping the future of the sector. From the UAE’s Federal Law No. 11 of 2024 to advancements in green hydrogen, solar financing, and carbon capture technology, we spotlight the innovative strides and challenges defining this critical area.
We also go into Saudi Arabia’s initiatives to integrate carbon capture into its industrial expansion and Egypt’s AFRICARBONEX platform, which underscores the region’s commitment to a sustainable and inclusive future.
Join us as we celebrate 35 years of legal excellence and forward-thinking insights, paving the way for a more sustainable tomorrow.
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A complete spectrum of legal services across jurisdictions in the Middle East & North Africa.
New Minimum Capital Requirements for Egyptian Companies operating in the Insurance Sector
On January 19, 2025, the Board of Directors of the Financial Regulatory Authority (“FRA”) has issued Decree No. 196 of 2024, establishing new minimum capital requirements for companies operating in the insurance sector in line with the Unified Insurance Law No. 155 enacted in July 2024 (the “Decision”).
Highlights of the Decision:
The minimum issued and paid-up capital for companies operating in the insurance sector shall be as follows:
| Activity | Minimum Capital | Reconciliation Grace Period | |||
| First: Insurance and reinsurance companies | |||||
| 1. | Life insurance and money formation companies & Property and Liability insurance companies | First Phase
EGP 400 million |
Second Phase
EGP 600 million |
One year for the first phase
& Two years for the second phase |
|
| 2. | Non-life and liability insurance companies that practice any of the branched of petroleum, aviation or energy insurance | First Phase
EGP 450 million |
Second Phase
650 million |
One year for the first phase
& Two years for the second phase |
|
| 3. | Micro insurance companies | EGP 40 million | One year | ||
| 4. | Insurance companies specializing in one of the insurance branches & specialised medical insurance companies | EGP 75 million | One year | ||
| 5. | Re-insurance companies | EGP 1 billion | One year | ||
| Second: Companies Practicing Insurance Related Activities | |||||
| 6. | Medical insurance program management companies | EGP 20 million | One year | ||
| 7. | Insurance brokerage companies & Reinsurance brokerage companies | EGP 5 million | One year | ||
| 8. | Risk Assessment specialised companies & companies with expertise in inspection and damage assessment & companies specialised in insurance consulting & actuarial expertise companies | EGP 3 million | One year | ||
Finally, companies must submit a timetable outlining their capital increase plans within one month of the Decision’s effective date. They are also prohibited from distributing cash dividends to their shareholders before meeting the minimum capital requirements, unless the FRA’s prior non-objection to such distribution has been obtained.
For more information, please contact Ali El Hawary, Partner, Head of Banking & Finance, Egypt Office Yasmeen Qotbi, Senior Associate, at the Banking and Finance department, Egypt office.
Key Contacts
a.elhawary@tamimi.com Spread the news
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