الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA Chairman:

• FRA is committed to monitoring market needs and removing barriers to non-banking financial growth.
• Expanding non-banking finance reach to ensure broader public benefit.

As part of the Financial Regulatory Authority’s (FRA) commitment to establishing effective and direct communication channels with all market stakeholders, and reinforcing its approach of active engagement with diverse perspectives, Dr. Islam Azzam, FRA Chairman, continued a series of meetings with representatives of non-banking financial sectors. He held a meeting with the Egyptian Mortgage Federation and various mortgage finance companies, in the presence of FRA senior leaders.

FRA Chairman confirmed the continuation of this consultative approach, aimed at deepening engagement with market players. Such efforts are central to advancing non-banking financial activities and enhancing financial inclusion.

Dr. Islam Azzam noted that the development of mortgage finance sector can only be achieved through a precise understanding of its practical challenges and by listening directly to market and stakeholders’ proposals. He indicated that the Authority is working to translate these insights into executive measures that help increase the sector’s contribution to the GDP and enhance the professional efficiency of its workforce.

During the meeting, companies presented several recommendations to optimize regulatory controls, aiming to drive market performance. A primary focus was placed on addressing liquidity challenges by scaling the use of securitization and other financial tools. This initiative is designed to foster deeper integration between mortgage finance and other non-banking sectors, providing the market with comprehensive and integrated financial products.

The meeting addressed strategies to stimulate demand for mortgage finance through the development of flexible products tailored to diverse income segments. These initiatives are central to broadening the beneficiary base and enhancing financial, investment, and insurance inclusion. According to recent FRA data, total mortgage financing reached EGP 2.9 billion by the end of January 2026—comprising both individual loans and purchased portfolios. Notably, portfolios transferred from real estate developers to finance companies represented 45% of the total financing volume.

Companies’ representatives explained that while current regulations have contributed to stability and protected consumer rights, rapid developments in the real estate market necessitate greater flexibility – particularly regarding loan-to-value (LTV) ratios, debt-to-income (DTI) limits, and repayment terms. This would allow for a broader beneficiary base without compromising regulatory oversight.

Moreover, they emphasized that the proposed amendments seek to strike an optimal balance between prudential stability and market stimulation. By fostering a more flexible environment for product innovation and heightened competitiveness, these reforms aim to broaden access to credit, particularly for middle-income demographics.

They expressed a strong interest in FRA’s demographic and geographic data analytics. These reports serve as a critical strategic tool for informed decision-making, enabling companies to segment the market and tailor financial products to evolving market needs.

FRA officials stated that a comprehensive review of mortgage finance regulations is scheduled for the near future. Additionally, the Authority will issue administrative circulars and periodic notes detailing the financing frameworks available to both individuals and corporate entities.

Furthermore, they explained that training programs will be designed and implemented for employees of mortgage finance companies on utilizing new electronic systems and submitting periodic data. Simultaneously, FRA is working to regulate real estate appraisal activities through an integrated electronic system, which will help develop property-pricing mechanisms based on geographical location.

In this context, FRA stressed the commitment of companies to Board Resolution No. 45 of 2026 regarding licensing requirements for key functions within non-banking financial companies. Adherence to Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) standards was also emphasized, in accordance with the instructions of the AML/CFT Unit and the results of the National Risk Assessment.

In conclusion, the Authority reaffirmed its readiness to provide awareness and technical support through workshops and training programs aimed at raising the efficiency of the sector’s workforce. These efforts seek to qualify personnel capable of business development and to train companies’ representatives on using the dedicated electronic platform for these activities.

This meeting was part of a series of periodic engagements aimed at deepening dialogue across various non-banking financial activities. It stems from FRA’s belief that market development begins with understanding real-world challenges and working collaboratively with market stakeholders to reach practical solutions that bolster economic growth.