36 real estate companies listed on EGX:FRA Head

Mohamed Farid, Chairman of the Financial Regulatory Authority (FRA), stated that listing on the Egyptian Exchange (EGX) provides real estate companies with opportunities for substantial growth and helps increase their equity.  

He highlighted that 36 real estate companies are listed on the EGX, with a total market capitalization of LE 263 billion. These companies achieve an average return on equity of 19.7 percent and a net profit margin of 39.2 percent.  

Farid explained that five companies with a market capitalization exceeding LE 500 million had a combined equity of LE 19.1 billion prior to listing. This figure has grown by 10.3 times to reach LE 193.3 billion following their listing.  

For medium-sized companies, the market capitalization jumped from LE 140.5 million to LE 14.5 billion, reflecting a growth rate of 103 times.

This underscores the importance of stock market listings, he added, while emphasizing the role of securitized bonds as a primary financing tool for real estate and other companies to achieve their strategic goals.  

His remarks were made during his participation in *The Investor..Real Estate" conference, where he met with a group of real estate developers.

Discussions focused on how the non-banking financial sector could help the real estate industry achieve its objectives by exploring innovative financing opportunities.  

Farid outlined the range of financing solutions and services offered by the non-banking financial sector under the FRA's supervision. These include listing and IPOs on the EGX, securitized bonds, sukuk, and real estate funds.

He also highlighted updated accounting standards enabling companies to revalue their assets at market value, as well as sustainability standards to encourage the development of eco-friendly residential communities.  

He emphasized that the FRA will maintain its dialogue with all market participants to drive further development, highlight the available reforms and opportunities, and bridge the gap between the public and private sectors.  

Farid also stressed the role of technological innovation in providing widespread access to the financial tools offered by the non-banking sector, ensuring financial, investment, and insurance inclusion—an effort that will benefit real estate funds in particular.  

Additionally, he pointed out that the insurance sector supports real estate sales by offering property title insurance, protecting buyers' rights.

He noted that companies are ready to take on such risks and reinsure these policies, allowing for the electronic issuance of standardized insurance contracts.