Mai Abdel Hamid, CEO of the Social Housing and Mortgage Finance Support Fund, announced that the Fund has been striving to build one million housing units for low-income citizens since its establishment in 2014. This announcement came during a workshop held in Egypt on affordable housing finance, attended by officials from several countries. Abdel Hamid emphasized the achievements of the presidential initiative “Housing for All Egyptians” and the vital role played by the banking sector in its success, stating that the Fund aims to secure the right to housing and to develop integrated urban communities.
The Social Housing Fund operates through specific mechanisms, conducting studies to determine income thresholds and the value of subsidies before issuing any new announcements. The initiative has helped provide housing to various social segments, including women and people with disabilities. Women currently own 24% of the allocated units, while 5% are reserved for people with special needs. Furthermore, 71% of beneficiaries are freelancers and private-sector workers. The Fund has contributed to increasing Egypt’s urban area from 7% to 14%, with 85% of units constructed in new cities, facilitating the relocation of families—though such relocation requires the provision of adequate transportation networks.
Mai Abdel Hamid announced the completion of 722 housing units and the allocation of 648,000 other units, along with the construction of an additional 298,000 units. In the latest announcement, Housing for All Egyptians 5, 79,000 units were offered and met with high demand. Preparations are currently underway for Housing for All Egyptians 7. So far, mortgage finance provided has reached approximately EGP 82.86 billion, while direct cash subsidies have totaled EGP 10.13 billion.
The Social Housing Fund has benefited from mortgage finance initiatives since 2014, with interest support paid by the Ministry of Finance. Interest rates range between 7% and 12%, with repayment periods extending up to 20 years. The Fund relies on the Ministry of Finance to subsidize interest rates, allowing low- and middle-income citizens to purchase housing units at their actual prices without any profit margin.
The program has succeeded in gaining the trust of 30 financial institutions, thanks to citizens’ commitment to timely repayments. The Fund has expanded its partnerships from just four banks initially to include 20 banks and 8 mortgage finance companies. The Central Bank of Egypt approved mortgage finance regulations in 2014, followed by amendments that enhanced financial inclusion and bank profitability. Deputy Governor of the Central Bank, Mai Abou El Naga, confirmed that Egypt’s hosting of the affordable housing finance workshop reflects the country’s accomplishments in this area. The event included representatives from 10 central banks to discuss financing challenges and explore innovative strategies.
