The protocols, signed by the ministry's New Urban Communities Authority (NUCA), are in line with directives from President Abdel Fattah El-Sisi and continuous follow-up by Prime Minister Dr. Moustafa Madbouly.
The agreements aim to activate a
free-market real estate finance system for residential, administrative, and
commercial units owned by NUCA.
These institutions include Banque
Misr, Commercial International Bank (CIB), Qatar National Bank - Egypt (QNB
Alahli), and Arab African International Mortgage Finance (AAIMF).
Minister of Housing, Utilities
and Urban Communities Engineer Sherif El-Sherbiny affirmed the protocols are
part of the ministry's vision to expand cooperation between the state and
financial institutions. The goal is to support citizens' efforts to own
property, revitalize the real estate market, attract local and foreign
investment, and thus boost state resources and drive the economy.
The Minister explained that this step
represents a qualitative leap in real estate financing tools in the Egyptian
market. It aims to provide flexible and sustainable financing solutions with
repayment periods extending up to 20 years, and with easy down payments suited
to various income brackets, while maintaining a balance between economic and
social dimensions. It also opens new horizons for Egyptian expatriates and Arab
and foreign investors to participate in the Egyptian real estate market under
the initiative to "export" Egyptian real estate.
El-Sherbiny added that
cooperation with these major financial institutions reflects confidence in the
strength and legal and administrative stability of NUCA's real estate projects.
It also allows institutions to direct financing toward ready-made,
fully-serviced units in new cities, ensuring rapid implementation, reducing
traditional procedures, and enabling citizens to own immediate units without
waiting for construction or delivery phases.
He pointed out that the
cooperation system includes three main tracks: financing the purchase of
ready-made units not covered by Central Bank initiatives, facilitating the
rescheduling of payments for previously contracted customers, and financing the
resale of units delivered by NUCA. These tracks offer flexible repayment
periods and are under the direct supervision of the relevant bodies to ensure
speedy and safe execution.
The Minister explained that this
cooperation achieves mutual strategic gains for all parties. It grants citizens
a real opportunity for ownership through easy down payments and long repayment
periods, making the monthly installment affordable for different segments, and
enhancing the value of real estate as a growing investment asset. It also
allows financial institutions to diversify their credit portfolios and offer a
stable, high-demand financing product backed by strong real guarantees,
contributing to financial inclusion and stability in the financial sector.
In return, NUCA benefits from
accelerating the marketing of units and achieving the necessary financial flows
to support urban expansion plans and complete infrastructure and services
projects in new cities, thus serving the state's developmental and social
goals.
El-Sherbiny affirmed that the
Housing Ministry is moving forward with developing the real estate financing
system in coordination with Egyptian banks and all mortgage finance
institutions, in line with the goals of the New Republic to achieve decent
housing for citizens, integrated urban development, and maximize the utilization
of state real estate assets. He indicated that the ministry is considering
expanding the signing of more protocols with Egyptian banks in the coming phase
to ensure the sustainability of this direction and enhance the efficiency of
the real estate market.
For their part, officials from the banks and Arab African International Mortgage Finance welcomed the protocol signing with the Housing Ministry, represented by NUCA. They confirmed that this cooperation contributes to achieving several direct economic outcomes, including stimulating financing and real estate sales in new cities, expanding ownership opportunities for citizens both inside and outside Egypt, and maximizing the state's non-tax revenues through innovative financing tools. Furthermore, it will attract new capital and investments that support the state's efforts to export real estate and develop the national real estate sector, in addition to stimulating the construction sector, which is one of the most capable sectors of boosting the economy and providing direct and indirect job opportunities.