​The Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, authorized real estate finance companies to extend credit to their clients using a “Syndicated Financing” system, Invest-Gate reports.

Under this model, multiple companies can jointly provide financing to clients seeking to purchase high-value units, provided each company complies with all rules and regulations governing real estate finance operations.

​Dr. Rehab Taha, Assistant Chairman of the Authority, addressed a letter to the Egyptian Real Estate Finance Federation indicating the Authority’s approval of “Syndicated Financing” operations following a study of the request submitted by the Federation regarding the participation of several companies in providing financing. This comes in light of several challenges facing the sector and market participants, most notably rising unit prices, the limited capital base of some companies, and their constrained ability to extend credit within the permitted limits of their capital.

​Regulations Governing Syndicated Financing and Protecting Corporate Solvency

​The Authority stressed a number of parameters that real estate finance companies must adhere to in “Syndicated Financing” operations, primary among which is each company’s commitment to the basic rules for extending credit to individuals and institutions under Real Estate Finance Law No. 148 of 2001, its executive regulations, and the regulatory decisions issued by the Authority. Furthermore, each company must individually comply with financial solvency standards for each lender in accordance with FRA Board Decision No. 158 of 2020.

​The Authority also emphasized the necessity for financing companies to execute real estate finance agreements according to the contract templates issued by the Authority, with the possibility of repeating the additional lender’s data in the contract template. Moreover, companies providing “Syndicated Financing” must not exceed individual concentration limits for financing natural persons for residential purposes, as well as the prescribed limits for natural and legal persons for non-residential purposes.

​FRA Board Decision No. 111 of 2015 stipulates that financing granted to natural persons for residential purposes shall not exceed 90% of the property value, except for financing under the lease-to-own (Ijarah) system, which is allowed up to 100%. It prohibits financing granted to a single investor, their spouse, and minor children from exceeding 15% of the company’s capital base, and prohibits the financing installment from exceeding 50% of the investor’s income.

​For non-residential purposes, the decision stipulates that the financing granted shall not exceed 80% of the property value, and that financing granted to a single investor shall not exceed 30% of the company’s capital base.

​Financial Regulatory Authority: Syndicated Financing Supports Real Estate Market Competitiveness

​Dr. Islam Azzam, Chairman of the Financial Regulatory Authority, stated that the Authority is keen on continuous communication with industry federations operating in non-banking financial activities to assess market developments and keep pace with changes, achieving a balance between activity growth, market stability, protecting clients’ rights, and ensuring absolute adherence to legislative and regulatory frameworks.

​The Chairman added that the approval of “Syndicated Financing” operations in the real estate finance sector came in light of monitoring challenges associated with price increases, their negative impact on competitiveness, and the limited financing opportunities available to certain segments of companies and market participants.

He stressed that these operations do not fall outside the defined legislative and regulatory framework, and that all companies must observe the aforementioned requirements and adhere to the rules set by the Authority, particularly solvency standards.

​It is worth noting that statistics for the first quarter of the current year 2026 showed a decline in the number of new real estate finance clients by more than 21%, while the value of granted financing rose by over 17.5% compared to the same period last year 2025, with residential units accounting for about 78% of total granted financing.