Leasing activity grew by 12% during the first half of 2016 in comparison to the same period last year, president of the Egyptian Financial Supervisory Authority (EFSA) Sherif Samy announced.
Samy said the value of contracts amounted to EGP 11bn this year and was EGP 9.88bn last year. However, the actual number of contracts this year decreased from 1,367 to 1,239.
According to a press release by the EFSA, real estate and land activity contracts outnumbered the rest of the categories with contracts worth EGP 8bn. Following this came equipment and machine activities which accounted for 9.4% of the total number of contracts. Auto transport had the third most contracts amounting to EGP 905m, 8.2% of the total value, the press release added.
The value of factored papers increased 14% to EGP 2.4bn compared to EGP 2bn registered during the first period of 2015, Samy added. The estimated funding balances for the seven licensed companies from the EFSA has increased 62% since last year, amounting to EGP 2.7bn as of the end of June 2016.
Samy also said that the factored papers are divided into local (91%) and international (9%), which benefited 237 companies as of the end of June 2016, compared to the 191 companies in 2015.
Investment in real estate in the first half of 2016 reached EGP 540m through mortgages, compared to last year’s EGP 542m, Samy added. Egyptian Mortgage Refinance Co. funding operations amounted to EGP 74m.
Mortgage clients with salaries more than EGP 3,500 per month make up 87% of the total beneficiaries during this period, and clients with salaries between EGP 2,500 and EGP 3,500 are 10%, added the press release.