الهيئة العامة للرقابة المالية

FRA Issues Updated Egyptian Real Estate Valuation Standards – Saturday 12 September 2026

• First Comprehensive Update to Real Estate Valuation Standards in 11 Years
• Framework Outlines General Principles, Methodologies, Valuation Approaches, Data Requirements, Documentation, Disclosure and Conflict-of-Interest Controls
• Includes Detailed Explanations of Property Rights, Practical Applications and Standardized Guidance Models for Real Estate Appraisers

Dr. Islam Azzam, FRA Chairman of the FRA:

• The updated standards will play a pivotal role in backing real estate activities, related investments, and associated financing mechanisms.
• Issuing these standards elevates the quality and reliability of valuation reports, directly enhancing the attractiveness and competitiveness of the Egyptian market.
• We ensured complete alignment with international standards, embedding methodologies anchored in transparency, consistency, objectivity and comparability.
• This framework serves as a core professional and regulatory benchmark for appraisers, investors and all market participants.

In a major step to elevate the efficiency of non-banking financial markets and enhance the credibility of valuation practices locally and internationally, the Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has released the second edition of the Egyptian Real Estate Valuation Standards—the first comprehensive update to the framework in over 11 years.

Issued under FRA Board Decision  No. 191 of 2026, the updated standards align with Law No. 10 of 2009 regulating non-banking financial markets, alongside governing legislation across insurance, capital markets, financial leasing, and mortgage finance. The framework reinforces FRA’s regulatory mandate to build transparent, efficient markets backed by clear valuation criteria aligned with international standards and adapted to Egypt’s economic and legislative landscape.

The release follows extensive market consultations initiated by the Authority to gather stakeholder feedback on market shifts occurring since the original standards were introduced under Board Decision No. 39 of 2015.

Dr. Islam Azzam, FRA Chairman highlighted that updated valuation standards are vital for supporting mortgage finance, real estate investment, real estate investment funds and all property-linked activities. He noted that reliable valuations directly boost technical rigor, enhance regional competitiveness and increase market attractiveness for both local and foreign investors.

FRA Chairman added that the new framework aligns directly with the latest International Valuation Standards (IVS), effective as of 2025, while ensuring full harmony with Egypt’s regulatory frameworks. This alignment guarantees valuation methodologies characterized by transparency, consistency, objectivity and global comparability.

The updated framework establishes rigorous ethical and professional mandates for real estate appraisers. Appraisers and their teams must adhere to strict ethical codes prohibiting dishonesty, fraud, or deceit, while maintaining total independence and disclosing potential conflicts of interest. Furthermore, they must ensure full compliance with professional standards, treat clients equitably, operate under strict quality control measures and retain all valuation records and documentation for a minimum of 5 years from report issuance or 2 years following the conclusion of any related legal proceedings.

The standards also define the scope and requirements for property valuations, specifying clear criteria for asset identification, source data accuracy, valuation purpose, assessment dates, and environmental and social factors. Appraisers are empowered to select the appropriate valuation basis tailored to the asset’s nature and purpose, supported by detailed guidance on determining the asset’s highest and best use.

Under the framework, three primary valuation approaches are outlined: the Market Approach, the Income Approach, and the Cost Approach. Appraisers must select one or more approaches based on the defined target value and purpose, and are encouraged to employ multiple methodologies when primary data is insufficient to reach a reliable conclusion.

Real estate valuation standards place heavy emphasis on input data quality, mandating that valuations rely on verifiable facts such as field measurements and published market rates. Real estate appraisers must evaluate data for accuracy, completeness and timeliness, maintaining full disclosure throughout the reporting process. Additionally, the framework explicitly requires appraisers to incorporate Environmental, Social, and Governance (ESG) factors into asset valuation calculations in addition to offering practical examples to guide appraisers in evaluating these variables.

Financial Regulatory Authority (FRA) reaffirmed that valuation reports and supporting documentation serve as essential pillars of regulatory compliance. These standards enhance professional efficiency, transparency and comparability while fostering market trust in valuation outcomes to protect the public interest. Under the newly issued framework, FRA establishes a mandatory baseline of core elements required in every valuation report. Appraisers are obligated to provide comprehensive documentation outlining the applied methodologies, inputs, data sources and risk management strategies. Furthermore, all valuation findings, review procedures and archival records must be documented and preserved to ensure data integrity and enable seamless retrieval when needed.

The framework governs the valuation of diverse property rights, including full ownership, secondary rights like leaseholds and non-exclusive usufruct rights. It outlines the three primary valuation approaches—Market, Income and Cost—for each right, alongside guidelines for determining market rent. Additionally, it establishes evaluation frameworks for properties under development, covering ground-up construction, Undeveloped land served by new infrastructure, land redevelopment and major structural renovations.

Dr. Islam Azzam, FRA Chairman noted that the Authority enriched the standards with essential technical annexes featuring practical application guides, comprehensive definitions and approved methodologies designed to facilitate implementation and build capacity of appraisers.

These practical annexes feature a step-by-step illustrated guide covering method selection, scope of work definition, and data collection and analysis. Additionally, they provide detailed reference frameworks for valuations conducted for financial statements, dedicated application guidelines for mortgage-backed and leasing transactions, specialized frameworks for evaluating projects and real estate under construction, and a comprehensive guidance model detailing all mandatory elements required in valuation reports.

The standards are issued in a companion manual exceeding 140 pages, structured into nine core chapters: Valuation Standards Structure, Glossary of Terms, Valuation Framework, Scope of Work, Valuation Bases, Valuation Approaches, Data and Inputs, Valuation Models, and Documentation and Reporting, alongside the technical annexes.

Board Decision will be published in the coming days in the Official Egyptian Gazette (El-Waqaea Al-Masryia) and on FRA’s official website, taking effect on the day following its publication date.

FRA Forms Committee to Draft Model Articles of Association for Insurance Pools – Friday 11 September 2026

• The decision aims to align pool governance and management with Unified Insurance Law No. 155 of 2024

Dr. Islam Azzam, FRA Chairman has issued a decision forming a committee to draft a unified model Articles of Association for insurance pools. The initiative aligns with the Unified Insurance Law No. 155 of 2024 while accommodating the specialized technical nature of each pool’s operation.

Under the decision, the committee is chaired by Dr. Tarek Seif, FRA Vice Chairman, with Counselor Reda Abdel Moaty, Senior Advisor to FRA Chairman, appointed as Vice Chair. The committee includes key FRA leaders and grants the Chair authority to invite external technical experts in a non-voting advisory capacity.

The new decision outlines 11 core responsibilities for the committee, key among which are evaluating the current Articles of Association across existing insurance pools, identifying operational similarities and differences, and defining areas requiring cross-pool standardization. Additionally, the committee will draft guidance rules governing administrative oversight, institutional governance, disclosure standards and conflict-of-interest controls

Additionally, the committee is tasked with defining membership criteria, member rights and obligations, and standardizing frameworks for general assemblies and board structures, including executive mandates and appointment conditions. The scope also covers establishing regulations for financial administration, investment management, internal controls and risk management.

The committee’s mandate extends to defining the framework for specialized internal committees—particularly audit, risk, and investment committees—setting dispute resolution mechanisms and drafting procedures for amending pool articles of association. Furthermore, the committee will draft the standardized Articles of Association, prepare the regulatory decisions required for formal adoption, and propose a transition timeline for existing insurance pools to align with the new model.

Five insurance pools currently operate in the Egyptian market: Nuclear Constructions Insurance Pool, Railways, Underground-Metro & Highways Accident Risks Insurance Pool, Civil Liability from Construction Insurance Pool, Compulsory Motor Third-Party Liability (MTPL) Insurance Pool and the Egyptian Travel Insurance Pool (EPTI).

Dr. Tarek Seif, FRA Vice Chairman: Reshaping Fire Insurance Requires Focusing on Risk Engineering – Tuesday 8 September 2026

• • Fire Insurance Accounted for 18% of Written Premiums and Recorded a 42% Retention Rate in 2025
  • AI, Predictive Analytics and Parametric Insurance Vital for Risk Assessment and Broader Coverage

  Dr. Tarek Seif, FRA Vice Chairman emphasized that developing the Egyptian insurance market requires a fundamental shift in risk management strategies—moving away from post-disaster loss minimization toward advanced risk engineering, proactive prevention, control and predictive assessment.

  Speaking on behalf of FRA during the keynote address at the opening session of “Fire Loss Prevention Conference”—organized today by the Insurance Federation of Egypt (IFE) led by Mr. Alaa El-Zoheiry—Dr. Tarek Seif addressed a distinguished gathering of insurance and reinsurance executives and industry experts.

  

Dr. Seif highlighted that fire insurance accounted for approximately 18% of total written premiums in 2025, recording 42% retention rate and 37% loss ratio. He noted that these figures make updating risk assessment and management practices an urgent priority to safeguard investments and ensure the stability of insurance portfolios.

He explained that while these metrics underscore fire insurance as a core segment of the market, they also highlight the pressing need to enhance risk evaluation tools. Over the years, the fire branch has faced recurring losses driven by the frequency and severity of incidents, as well as heightened risk profiles in several cases.

FRA Vice Chairman stressed the importance of expanding pre- and post-loss risk control measures—combining preventative actions prior to an event with mitigation strategies after an incident occurs. This dual approach improves the quality of accepted risks, enhances underwriting and pricing decisions, optimizes portfolio management and reduces overall losses.

In this context, Dr. Seif called for developing innovative insurance products capable of reaching underserved segments and geographic regions. He highlighted the potential of index-based and parametric insurance as key mechanisms to boost financial inclusion within the fire insurance sector.

Furthermore, expanding coverage and elevating risk management standards requires leveraging artificial intelligence, data analytics and predictive modeling. The industry must transition from relying solely on historical loss ratios toward a forward-looking risk assessment framework, enabling early detection and proactive management of shifting risk profiles.

Dr.  Tarek Seif affirmed that this direction aligns with the regulatory framework established by the Unified Insurance Law No. 155 of 2024. The law grants FRA exclusive jurisdiction over the establishment, licensing, supervision, and regulation of insurance and reinsurance activities and related professions. It also reinforces risk-based supervision across the Egyptian insurance market. Looking ahead, the sector must redefine the role of insurance—moving beyond loss compensation to actively reducing incident probabilities and mitigating impact through advanced risk engineering and management.

Concluding his address, FRA Vice Chairman invited conference participants to issue practical, actionable recommendations to advance the fire insurance sector, particularly in risk engineering, prevention and control mechanisms, product development and the adoption of AI and predictive analytics. He reaffirmed FRA’s full support for any proposals that elevate market efficiency, strengthen fire risk management and broaden insurance coverage.