RIYADH: Egypt’s non-bank financial sector recorded broad-based growth in the first half of 2026, with insurance, mortgage finance, consumer lending, leasing and factoring posting annual gains, according to the Financial Regulatory Authority.
Total securities issuances approved during January-June reached 269.8 billion Egyptian pounds ($5.3 billion), down 30.7 percent from 389.1 billion pounds a year earlier, mainly due to a sharp decline in equity issuances.
Insurance premiums collected rose 15.7 percent year on year to 65.7 billion pounds, while mortgage finance increased 24.9 percent to 27.6 billion pounds.
The expansion came as the Central Bank of Egypt maintained high borrowing costs to curb inflation. In its July statement, the bank’s Monetary Policy Committee kept key interest rates unchanged, while projecting real GDP growth of about 5 percent for fiscal 2025-26. Annual headline inflation eased to 14.3 percent in June.
The FRA said its report was compiled “to include the most important indicators on the activity of the capital market, insurance, mortgage finance, financial leasing, factoring, consumer finance, and financing of small, medium and micro enterprises, as well as the movable collateral registry.”
Consumer, SME financing lead growth
Consumer financing was among the strongest performers, surging 88.5 percent year on year to 71.8 billion pounds and serving 8.47 million customers, up 75.7 percent from 4.82 million.
Electronics and vehicle purchases accounted for the largest shares of June financing, at 26.5 percent and 19.2 percent, respectively.
Financing for micro, small and medium enterprises rose to 54.2 billion pounds from 49.2 billion pounds, benefiting 1.34 million customers. Microfinance alone reached 44.9 billion pounds, up from 40.9 billion pounds, with women accounting for more than half of beneficiaries in both segments.
Leasing, factoring gain
Financial leasing contracts totaled 90.6 billion pounds across 1,045 contracts, up 7.3 percent annually, with real estate and land accounting for the largest share.
Factoring rose 32.3 percent to 78 billion pounds, driven mainly by local discounting.
On the capital market, the EGX30 index closed June at 50,487.96 points, up 20.7 percent year to date, while the market capitalization of listed shares climbed 56.9 percent year on year to 3.68 trillion pounds.
Total trading value across equities, bonds and treasury bills reached 12.5 trillion pounds in the first half, an annual increase of 58.1 percent.
The FRA cautioned that the figures remain subject to revision as companies report subsequent adjustments, settlements and cancellations.
