Emirates NBD Egypt mulls establishing new mortgage unit

Emirates NBD Egypt is studying establishing a new unit for mortgage activities, its deputy managing director Sahar El Damati told Amwal Al Ghad on Tuesday.

The move aimed to take part in the central bank’s initiative to finance mortgages for people on low and middle incomes, El Damati added.

In 2014, Egypt’s central bank allocated 10 billion Egyptian pounds ($1.1 billion) to finance mortgages for people on low and middle incomes, aiming to boost the construction and real estate sectors.

Banks will acquire the money from the central bank over a 20-year period at low prices and re-lend it to low earners at a seven percent decreasing rate of return and to middle earners at eight percent.

El Damati further said Emirates NBD Egypt’s total customers’ loans had reached around 4 billion pounds during the first half of 2016.