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 Mandates Real-time Links between Finance Firms, I-Score –  Saturday 12 September 2026

• Companies Must Notify “I-Score” Instantly Across All Loan Lifecycle Stages Starting from Initial Approval
• Real-time electronic links to Be Completed Within 3 Months of Publication in the Official Gazette

Dr. Islam Azzam, FRA Chairman:

• Real-time electronic links enhances the integrity of underwriting decisions and boosts operational efficiency across the sector.
• Instantly updating credit data reduces default rates and protects borrowers from over-indebtedness risks.
• This step supports FRA’s strategy to balance sector growth with institutional stability and consumer protection.

Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has issued two decisions mandating consumer finance companies and micro, small and medium enterprise (MSME) financing institutions to establish real-time electronic links with credit bureau I-Score. The decision aims to strengthen credit oversight across all financing stages while enhancing the speed, accuracy and efficiency of creditworthiness assessments and reporting processes.

Under FRA Board Decisions No. 174 of 2026, licensed consumer finance entities must report customer data to I-Score instantly upon loan approval, disbursement, partial or total repayments, facility termination, the initiation of legal or judicial proceedings, or any status changes regarding legal actions.

Furthermore, consumer finance companies remain obligated to submit monthly credit reports within five business days following the end of each month using standard reporting templates.

Similarly, Board Decision No. 175 of 2026 mandates licensed MSME financing companies, associations, and NGOs (Categories A and B) to implement the same real-time reporting framework across the same designated trigger events: upon initial financing approval, fund disbursement, partial or full loan repayments, facility termination, the initiation of legal or judicial proceedings, or any subsequent status change regarding such actions.

Both Decisions grant non-banking financial entities a three-month deadline from the date of publication in the Official Gazette (El-Waqaea Al-Masryia) and on FRA’s official website to finalize full electronic link with I-Score.

Dr. Islam Azzam, FRA Chairman underscored that real-time electronic link with I-Score will empower companies to make well-informed decisions that boost market efficiency and growth, while simplifying data monitoring and regulatory supervision.

“Real-time data integration directly improves operational efficiency and credit evaluation standards. It equips lenders to verify existing liabilities, track borrower statuses, ensure proper utilization of funds, and monitor repayment compliance—ultimately safeguarding the financial soundness of non-banking financial institutions,” Dr. Azzam stated.

“Updating customer credit data accurately and in real time equips non-banking financial entities to make sound underwriting decisions. This minimizes default rates, protects borrowers from over-indebtedness and ultimately reinforces the overall stability of the non-banking financial sector and market oversight,” stated the FRA Chairman

Dr. Islam Azzam noted that the mandate for real-time integration reflects FRA’s ongoing efforts to strike a balance between developing regulated markets and safeguarding market participants through modern digital tools. He added that seamlessly connecting non-banking financial stakeholders aligns with the governing legal and regulatory frameworks spanning capital markets, insurance and non-banking finance.

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).