Valuing Intangible Assets in Egypt Resolution 136 of 2025

On 30 July 2025, Egypt’s Financial Regulatory Authority (FRA) introduced Resolution No. 136 of 2025, a landmark decision that sets out the country’s first formal framework for valuing intangible assets. The move, which brings Egyptian practice in line with the International Valuation Standards (IVS 2024), signals a decisive step toward modernizing the nation’s financial landscape.

Intangible assets—patents, software, trademarks, customer relationships, and other non-physical resources—are now widely regarded as the true drivers of enterprise value. By recognizing this shift and putting a structured valuation framework in place, the FRA aims to strengthen market transparency, build investor confidence, and give Egypt a stronger competitive footing in attracting global capital.

Defining Intangible Assets

The resolution defines intangibles as “non-monetary resources that confer rights or economic benefits, lacking physical substance yet possessing identifiable economic characteristics such as ownership, market position, reputation, and legal protection.” This definition closes a long-standing gap, ensuring that assets as varied as intellectual property, software platforms, franchise agreements, and proprietary databases are treated consistently across industries.

Valuation Methodologies

To bring consistency to practice, the FRA requires valuers to rely on one of three established approaches: income, market, or cost.

The income approach focuses on the economic benefits an asset is expected to generate. Within this, several techniques are recognized. The excess earnings method isolates the contribution of a particular intangible by deducting returns on other assets from overall earnings, making it especially useful for customer portfolios and proprietary technologies. The relief from royalty method values ownership by estimating the royalties a business avoids by holding the asset rather than licensing it, a standard approach for brands and patents. Meanwhile, the with and without method compares business performance under scenarios where the asset exists versus where it does not, offering a practical way to value licenses, concessions, or regulatory approvals.

The market approach determines value by reference to comparable transactions. While local data is limited, global benchmarks—when carefully adjusted for Egypt’s economic environment—provide a useful reference point. Finally, the cost approach estimates the expense of reproducing or replacing the asset, factoring in depreciation and obsolescence. This method often comes into play where income or market data is lacking.

Oversight and International Alignment

Beyond methodology, the FRA’s framework is notable for its governance standards. Resolution No. 136 draws explicitly on IVS guidance: valuers must clearly define scope, assumptions, and intended users; they must demonstrate data sufficiency and professional independence; and they are required to reconcile results across multiple methods in a transparent way.

Discount rates, moreover, need to be calibrated to Egypt’s market realities, accounting for inflation, foreign exchange risk, and country-specific premiums. Sensitivity testing is encouraged, with scenario analysis expected to highlight how results might shift under best- and worst-case conditions. Together, these requirements are designed to embed rigor and comparability into practice.

Implications for the Market

The new standards are expected to reshape practice across the economy. For startups and venture-backed businesses, intellectual property can now be valued on a more credible basis, strengthening their position in fundraising rounds and exit negotiations. Publicly listed and larger corporates gain clearer guidance for fair-value accounting, impairment testing, and revaluations, aligning their reporting more closely with international expectations. Investors and regulators benefit from a system that reduces scope for manipulation and increases trust in cross-border and related-party transactions.

The sector-specific impact will be equally significant. Technology and fintech firms can present their software and platforms with defensible valuations. Consumer brands can measure their trademarks with greater precision. Pharmaceutical and biotech companies gain a framework for testing the incremental worth of patents and licenses. And in telecommunications and media, spectrum rights and broadcasting licenses can now be assessed under structured, regulator-aligned models.

Building Market Integrity

Alongside technical standards, the FRA has committed to developing the institutional backbone of this reform. Professional valuers will be trained and accredited, reports will be subject to peer review and regulatory audit, and continuous monitoring will ensure independence and competence. These measures are intended not just to raise standards, but also to safeguard the credibility of the valuation profession itself.

Conclusion

The introduction of Resolution No. 136 of 2025 is more than a regulatory milestone—it is a statement of intent. By embedding global best practices into Egypt’s local context, the FRA has laid down a framework that is rigorous, transparent, and suited to the realities of an economy in transition.

The benefits will be felt across the board. Reporting will become more reliable, investors will gain greater confidence, and innovation-driven enterprises will finally have the tools to demonstrate their worth convincingly. In a world where competitive advantage increasingly depends on ideas, reputation, and intellectual property rather than physical capital, Egypt has taken a bold step forward. The FRA’s initiative ensures the country is better prepared for an era in which intangible assets define not only corporate value but also national competitiveness and long-term growth.

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