الهيئة العامة للرقابة المالية

• Full alignment with real estate valuation standards expands activity scope and boosts asset appraisal efficiency.

Dr. Islam Azzam – FRA Chairman:

• Comprehensive national valuation framework established to align with accelerating global developments.
• Leasing, project finance, corporate restructuring, and asset revaluation emerge as primary beneficiaries.
• New guidelines strictly adhere to international valuation benchmarks and Egypt’s evolving legislative frameworks.

In line with its ongoing efforts to develop non-banking financial markets and elevate valuation standards across Egypt, Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has issued the first Valuation Standards for Machinery, Equipment and Infrastructure.

Issued under Board decision No. 191 of 2026, the new rules align with Law No. 10 of 2009 and Egyptian laws governing insurance, capital markets, financial leasing, and real estate finance. The goal is to build transparent, efficient markets using clear valuation standards that match international best practices and fit Egypt’s economy.

The new standards seamlessly integrate with the previously released Real Estate Valuation Standards to foster a comprehensive, high-transparency valuation ecosystem supporting all related financial activities.

Dr. Islam Azzam stated that the new standards provide, for the first time, a unified professional framework for evaluating productive and capital assets. This framework supports key economic transactions, including financial leasing, asset-backed finance, project finance, corporate restructuring and mergers and acquisitions (M&A).

He added that combining real estate, machinery, and equipment and infrastructure valuation standards establishes a cohesive national framework aligned with rapid global developments. Built on independence, neutrality and comprehensiveness, this system enhances investor and institutional confidence across Egypt’s financial markets.

Under the regulatory framework, machinery, equipment, and infrastructure are categorized as long-term tangible assets held for manufacturing, production, goods or service delivery, rental or administrative purposes.

The guidelines detail multifaceted valuation criteria, incorporating asset-specific factors such as technical specifications, productive capacity, remaining useful life, physical condition and decommissioning costs. They also consider external and environmental variables, economic indicators like actual or potential profitability and alternative operational uses, and maintenance dynamics including lifespan, technical status, technology type and output capacity.

Appraisers will apply the three-core valuation methods established under the real estate framework: Market Approach based on comparative analysis of similar market transactions, Income Approach utilizing cash flow modeling for individual assets or complementary asset groups and Cost Approach based on estimating replacement or reproduction cost adjusted for depreciation.

To facilitate implementation for appraisers and market participants, the guidelines feature practical annexes detailing step-by-step equipment inspection protocols, physical examination criteria, documentation standards, and appraisal reporting principles.

Dr.  Islam Azzam noted that the new standards fully align with the International Valuation Standards (IVS)—effective globally since 2025—and comply with Egypt’s local legislative frameworks, ensuring objective, transparent, and internationally comparable methodologies.

FRA Chairman reaffirmed that standardized valuation rules serve as a vital pillar for the growth of real estate activities and related investment and financing operations. These rules establish a binding professional and regulatory reference for appraisers, investors, and market participants, helping harmonize professional practices and build a future anchored in transparency and governance. This aligns with the Authority’s broader efforts to develop the non-banking financial sector by balancing market expansion with stability and consumer protection.

It is worth noting that real estate valuation experts fall under the regulatory and supervisory jurisdiction of the Financial Regulatory Authority pursuant to the Real Estate Finance Law.

The resolution is scheduled for publication in the Official Gazette and on FRA website in the coming days, coming into force on the day following its publication date.