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Amlak Finance launches operations in Egypt

AMLAK Finance and Real Estate Investment, a wholly-owned subsidiary of Amlak Finance PJSC, yesterday announced the official launch of its operations in Egypt at a Press conference in Cairo.

The event was attended by Nasser Al Shaikh, Chairman of Amlak Finance; Osama Saleh, Chairman of the Mortgage Finance Authority (MFA), Arif Al Harmi, CEO of Amlak Finance UAE, and Ahmed Haggag, CEO of Amlak Finance and Real Estate Investment; in addition to company officials and members of the Egyptian, UAE and regional media.

According to Al Shaikh, the Egyptian real estate sector is growing at an unprecedented rate and the need to offer local and foreign consumers the opportunity to choose their desired mortgage finance scheme in addition to the unparalleled support provided by the Egyptian government to further add value to the sector.

"We clearly foresee the Egyptian mortgage market as a key player in the growth of the country's economy, especially in light of the remarkable strong macroeconomic performance and the GDP growth that averaged seven per cent over the past two years," added Al Shaikh.

Egypt's mortgage law was passed in 2001, and the value of deals approved under the law reached E£1.4bn (around $250m), a significant growth that is set to witness further increase especially with the availability of mortgage finance opportunities and diversified products for the local and foreign investors.

"We are working in unison with the Mortgage Finance Authority (MFA) to provide prospective customers with the choice of advanced Shariah-complaint products when looking to invest their savings in a life long property," noted Al Shaikh.

Haggag told the Press conference, "We have rolled out a number of Shariah-compliant home finance products to provide customers with the opportunity to purchase any commercial property, with long-term tenures of up to twenty years.

"While the mortgage finance sector is still in the developing stages in Egypt, Amlak brings forth the expertise of a dedicating team of professional finance and real estate practitioners; the support of the UAE's leading Islamic home finance company; as well as the financial solutions for the customers to choose the kind of financing that appeals to their beliefs."

The Egyptian government's continuing reforms, which were implemented and are planned in the near future are key to the potential growth of Egypt's mortgage sector, especially in light of the estimated 1.5 per cent annual growth in the sector, the shortfall of around 145,000 units per year, as well as the availability of more than one million apartments that are uninhabited due in part to the lack of financing opportunities.