Non-bank financial activities constitute a core component of the modern financial system, playing an effective role in supporting economic growth and promoting financial inclusion through the provision of diverse financing services outside the framework of the traditional banking system. These activities encompass several vital areas, most notably mortgage finance, leasing, factoring, consumer finance, and financing for micro, small, and medium-sized enterprises (MSMEs).
Mortgage finance provides financing solutions that enable individuals to acquire residential units and enhance the capacity of real estate developers to implement their projects, thereby contributing to bridging the housing gap and supporting the construction and building sector. Leasing, in turn, represents an effective tool for financing productive assets without the need for immediate ownership, allowing institutions and companies to improve their operational efficiency.
Factoring provides companies with immediate liquidity through the purchase of their receivables from customers, thereby helping to improve working capital cycles. Consumer Finance addresses the growing needs of individuals to acquire essential goods and services through accessible and flexible financing solutions, which in turn stimulates domestic demand.
Microfinance also plays a critically important role in empowering low-income segments, particularly micro-entrepreneurs, by enabling them to access the necessary financing to improve their living standards and contribute to the formal economic activity.
Laws Governing Non-Bank Financial Activities in Egypt
The Law Regulating Leasing and Factoring Activities, promulgated by Law No. (176) of 2018
- The Mortgage Finance Law, promulgated by Law No. (148) of 2001
- The Law Regulating the Practice of Financing Micro, Small, and Medium Enterprises, promulgated by Law No. (141) of 2014
- The Law Regulating Consumer Finance Activities, promulgated by Law No. (18) of 2020
- Regulatory decisions issued by the Authority
To view the legislations governing non-bank financial activities via the Legislation Portal, click here.
Governance and Compliance
The Financial Regulatory Authority (FRA) works to entrench the principles of transparency, disclosure, and sound governance through the following measures:
- Requiring companies to make periodic disclosures of their financial statements and material information
- Monitoring the extent of institutions’ compliance with professional rules and standards
- Combating fraud, manipulation, money laundering, and the financing of terrorism within the non-bank financial sector
Professionals Operating in the Non-Bank Financial Sector
The Authority grants licenses to practitioners and professionals operating in the non-bank financial sector in accordance with specific regulatory requirements. These licenses include:
- Real Estate Agent License
- Asset Revaluation Expert License
- Real Estate Valuation Expert License
- Mortgage Finance Broker License
Obtaining these licenses is conditional upon passing approved professional examinations and adhering to professional rules and ethical standards.
Non-Bank Financial Sector Data according to the FRA Annual Report for 2024
First: Mortgage Finance
Mortgage finance companies extended EGP 25.5 billion in financing to their clients in 2024, compared to EGP 10.4 billion in the previous year, representing a growth rate of 144.9%.
Second: Consumer Finance
Consumer finance is the most recent non-bank financial activity to fall under the supervision of the Financial Regulatory Authority, pursuant to the Consumer Finance Law (Law No. 18 of 2020), which designated the Authority as the competent regulator. The value of consumer finance extended amounted to EGP 61.3 billion in 2024, compared to EGP 47.3 billion in 2023, achieving a growth rate of 29.6%.
Third: Leasing and Factoring
The value of leasing contracts reached EGP 118.9 billion in 2024, compared to EGP 117.5 billion in the previous year, recording an increase of 1.2%.
The total value of factored receivables amounted to EGP 74.6 billion in 2024, compared to EGP 44.0 billion in the previous year, achieving a growth rate of 69.4%.
Fourth: Financing of Micro, Small, and Medium Enterprises
The outstanding balances of financing extended to MSMEs reached EGP 80.5 billion at the end of 2024, compared to EGP 57.1 billion in the previous year, reflecting an increase of 41%.
The number of beneficiaries stood at 3.7 million at the end of 2024, compared to 3.8 million in the previous year, representing a decrease of 2.3%.
The total value of financing extended to MSMEs amounted to approximately EGP 95.8 billion at the end of 2024, compared to EGP 72.6 billion in the previous year, recording a growth rate of 31.9%. The number of beneficiaries reached 3.4 million in December 2024, compared to 3.7 million at the end of 2023.
Fifth: Movable Collateral Registry
The Movable Collateral Registry is an electronic system that enables the registration of rights and security interests over movable assets—such as equipment, inventory, vehicles, or receivables—with the aim of facilitating access to finance for individuals and enterprises, particularly small and medium-sized enterprises, by allowing such assets to be used as collateral instead of relying solely on real estate.
This registry represents an important step toward improving the business environment and expanding opportunities for secured lending in the Egyptian market, as it enables creditors to verify the existence of valid collateral prior to extending financing, thereby reducing risks and enhancing confidence among market participants.
The (FRA) is responsible for overseeing the regulation and management of the Movable Collateral Registry, ensuring the protection of rights, enhancing transparency, and providing an integrated legislative framework in line with international best practices.
The registry is governed by:
Law No. 115 of 2015 on the Regulation of Movable Collateral
The FRA Board of Directors’ issued Decision No. 145 of 2016 concerning the assignment, establishment, and management of the registry to a specialized company.
To view the legislation governing movable collateral activities via the Legislation Portal, click here.
The electronic Movable Collateral Registry was launched in March 2018. From its inception until the end of 2024, the estimated value of registered security interests over movable assets reached EGP 3.1 trillion, with approximately 202,000 registrations recorded. The value of registrations increased by approximately 24.5% in 2024 compared to the previous year.
Last modified: December 18, 2025