Egypt sets EGP 100M as minimum capital for real estate financing companies – Egypt Today

Egypt sets EGP 100M as minimum capital for real estate financing companies – Egypt Today

CAIRO – 18 April 2024: The Egyptian Cabinet approved a draft decision to amend certain provisions of the executive regulations of the Real Estate Finance Law mandating an increase in the minimum issued and paid-up capital for companies licensed to practice real estate financing activity from EGP 50 million to EGP 100 million. This increase can be fulfilled through cash or its equivalent in foreign currencies at the exchange rate announced by the Central Bank of Egypt (CBE).

 

The amendment specifically targets the minimum issued and paid-up capital for companies engaged in real estate financing activities, to reflect the significant changes witnessed in the global and local economy, particularly the rising costs of production requirements and raw materials in the real estate sector.

 

The decision highlights the need to enhance the financial solvency of real estate financing companies in light of the escalating value of real estate assets, which may become subjects of real estate financing. By raising the minimum capital requirement, the amendment aims to ensure that these companies possess the necessary resources to meet the growing demands of the market.

 

According to the draft resolution, companies licensed to engage in real estate financing activities are obligated to adjust their capital within