Market Scope

Several active market players are still limited from 15 to 20 companies among the 226 licensed companies.

Certain factors are expected to result in the continuing growth of NBFS even during the economic slow–down in Egypt. Such factors include, but are not limited to, the government and regulator’s support, the time saving elements where these products take much less time and documentation compared to traditional banking and recently, the decrease in financing cost to the investor. These are key drivers for replacement demand (i.e. replacing existing bank loans with non-banking finance to benefit from time value, stability of cash flow and higher visibility for future business.

Non-Banking Financial Institutes have an edge over banks as being specialized in asset-backed financing. The turn-around time for funding approvals is shorter, and the ownership for the underlying assets is more powerful collateral for the financier compared to normal conventional banking loans.