Real estate finance companies in Egypt grant their customers LE 8B during 2021

CAIRO - 18 January 2022: Real estate finance companies granted LE 8.1 billion to their clients during 2021, compared to LE 3.4 billion in 2020, marking a growth rate of 138.2 percent, according to Head of  the Financial Regulatory Authority (FRA), Mohamed Omran.

During a conference held, Monday, Omran attributed this rise to a significant recovery in the real estate market as a result of the coronavirus pandemic, in addition to the tendency of real estate development companies to deal with real estate finance companies more.

He explained that the value of financial leasing contracts amounted to LE 79.8 billion in 2021, compared to LE 58.9 in 2020, marking an increase of 35.5 percent, which he attributed to the recovery of financial leasing activity from the slowdown that prevailed in 2020 as a result of the economic activities affected by the repercussions of the coronavirus pandemic.

While the value of the discounted securities amounted to LE 20.3 billion in 2021, compared to LE 11.3 billion in 2020, achieving a growth rate of 79.6 percent, as a result of companies operating in the field of non-banking financial activities obtaining a license to engage in factoring activity, and the increase in the number of factoring companies. In addition to the introduction of consumer factoring activity, according to the FRA.

He added that the value of consumer financing granted recorded LE 17.2 billion in 2021, compared to LE 8.4 billion in 2020, achieving a growth rate of 104.8 percent.