CEOs of SHMFF and QNB Alahli signing the protocol. Cabinet.
The new funding increases QNB Al Ahli’s mortgage finance allocations for SHMFF’s clients to EGP 5 billion, according to a cabinet statement on Monday, citing the fund’s CEO Mai Abdel-Hameed.
The protocol with the SHMFF is in line with the cooperation between the fund and the bank in providing mortgage finance for low- and middle-income citizens at 7 percent and 8 percent interests, QNB Al Ahli’s CEO Mohamed Bedeir stated.
The bank’s mortgage finance sector grew by 67 percent year-on-year in 2022 with a portfolio of EGP 5.5 billion, serving more than 24,000 clients, Bedeir noted.
Founded in 2018, SHMFF is an Egyptian state entity providing housing units for middle- and low-income citizens that are suitable for their financial capabilities.
Different bodies of the Egyptian state have been moving in recent years to promote mortgage finance in Egypt.
In 2019, the Central Bank of Egypt (CBE) allocated EGP 50 billion to a real estate financing initiative for middle-income individuals.
The initiative’s oversight was transferred from the CBE to the Ministry of Finance in November 2022.
According to Mordor Intelligence firm, the Egyptian residential real estate market is expected to grow from $18.04 billion in 2023 to $30.34 billion by 2028.