“Securitization” and “Bond Issuances” Seen as Alternatives for Companies to Diversify Funding Sources

Mohamed El-Kahky, Managing Director of “Tamweel” for Mortgage Finance, stated that financing under-construction projects is one of the most critical factors in revitalizing the real estate industry in Egypt.

Speaking during the fourth Non-Banking Financial Instruments Forum on Tuesday, in a session titled “Mortgage Finance and Factoring as Key Players in Supporting Investment,” El-Kahky urged policymakers to take steps that would allow funding opportunities for real estate projects still under construction. He noted that this model is already implemented in countries like the United States and Canada.

El-Kahky emphasized that most banks and companies currently do not provide financing for this phase of real estate development, despite it being one of the essential stages that requires financial support.

He explained that recent amendments to streamline the property registration process and reduce interest rates support the real estate sector’s activity in the coming period. He added that mortgage financing relies on long-term repayment plans, which contribute to market stability.

El-Kahky also highlighted that securitization and bond issuances serve as alternative mechanisms for mortgage finance companies to diversify their funding sources. He noted that companies are currently focusing on two primary phases for financing customers: the resale phase by the developer and the unit handover phase.