Islam Azzam, Chairperson of the Financial Regulatory Authority (FRA), held a meeting with representatives of the Egyptian Mortgage Federation and companies operating in the sector, as part of the Authority’s ongoing engagement with non-banking financial activities. The meeting reflects FRA’s commitment to fostering direct and effective communication with market participants, while reinforcing its approach of listening and responding to diverse perspectives.
Azzam said this participatory approach will continue in the coming phase through expanded dialogue with key stakeholders, with the aim of developing non-banking financial activities and broadening the scope of financial inclusion.
He noted that advancing the mortgage finance sector requires a precise understanding of on-the-ground challenges, alongside direct engagement with market feedback and proposals from relevant stakeholders. He added that FRA is working to translate these insights into actionable measures that will increase the sector’s contribution to GDP and enhance the efficiency of professionals operating within it.
During the meeting, companies presented several proposals to amend certain regulatory frameworks governing the sector. Key issues raised included operational and financing challenges facing mortgage finance companies, as well as ways to enhance liquidity through broader use of financing tools—particularly securitisation. This, they noted, would help strengthen integration between mortgage finance and other non-banking financial activities, enabling the delivery of more comprehensive financing solutions.
Discussions also addressed mechanisms to stimulate demand for mortgage finance and the development of more flexible financial products tailored to different income segments. Such measures would help expand the beneficiary base and support higher levels of financial, investment, and insurance inclusion. According to FRA’s latest data, the value of financing extended by mortgage finance companies reached approximately EGP 2.9bn by the end of January 2026, distributed between retail clients and purchased portfolios. Meanwhile, portfolios transferred from real estate developers accounted for around 45% of total financing.
Company representatives noted that current regulations have contributed to market stability and the protection of stakeholders’ rights. However, they emphasised that rapid developments in the real estate market require greater flexibility in areas such as loan-to-value ratios, debt burden limits, and repayment tenors, in order to expand access without undermining regulatory standards.
They further stressed that the proposed amendments aim to strike a balance between maintaining financial stability and stimulating market activity, by allowing greater scope for product innovation and enhancing competitiveness. This would, in turn, improve access to finance, particularly for middle-income segments.
Participants also highlighted the importance of FRA’s periodic reports and statistics, particularly those analysing age groups, geographic distribution, and income levels with the highest uptake of mortgage finance. These, they noted, serve as essential tools for informed decision-making and for aligning products with market needs.
For their part, FRA officials confirmed that the Authority will review regulations governing mortgage finance activity in the coming period, alongside issuing circulars on financing mechanisms for both natural and legal persons.
They also indicated that training programmes will be developed and rolled out for employees of mortgage finance companies, focusing on the use of new electronic systems and the regular submission of company data. In parallel, efforts are underway to regulate the activities of real estate valuation experts through an integrated electronic system, helping to ensure more accurate property pricing across geographic areas.
Moreover, FRA officials emphasised the importance of compliance with FRA Board Resolution No. 45 of 2026, which governs licensing requirements and their continuity for key positions within non-banking financial companies, as well as adherence to anti-money laundering and counter-terrorism financing regulations, in line with directives from the relevant unit and the outcomes of the national risk assessment.
The meeting concluded with a reaffirmation of FRA’s readiness to provide both technical and awareness support through workshops and training programmes aimed at enhancing workforce capabilities, improving business practices, and training company representatives on the use of the Authority’s electronic platform.
