In a landmark move to boost home ownership among lower- and middle-income citizens, Egypt’s Social Housing & Mortgage Finance Fund has signed a strategic cooperation protocol with NEXT Bank, committing up to ₂ billion Egyptian pounds in mortgage financing support. The agreement was formalized in Cairo by Mai Abdel‑Hamid, CEO of the housing fund, and Tamer Seif El‑Din, CEO and Managing Director of NEXT Bank.
Under the new protocol, NEXT Bank will serve as a key financial partner for the fund’s housing initiatives, especially under the presidential “Housing for All Egyptians” program. The move expands upon an earlier agreement signed in August 2023, which had set a financing ceiling of ₤800 million.
“NEXT Bank is a vital collaborator in enabling low‑ and middle‑income citizens to access home mortgages,” said Abdel‑Hamid. She emphasized that the elevated budget allocation reflects the state’s prioritization of housing affordability and expanded access.
Abdel‑Hamid also noted that 2.1 million applicants have applied for housing units under the fund’s current offers, prompting a concurrent upgrade to the fund’s digital infrastructure aimed at accelerating mortgage application processing and disbursement. A new tech platform is slated for launch imminently.
NEXT Bank Commits to Financial Inclusion
Tamer Seif El‑Din said NEXT Bank’s role in the agreement extends beyond capital provision: the bank intends to pioneer diversified and customer‑centric mortgage solutions aimed at broadening financial inclusion in Egypt.
“Our goal is to deliver long-term, low-interest financing options that align with the government’s agenda and provide real access to homeownership for underserved segments,” he stated. The bank views the protocol as part of its social responsibility mandate.
A Significant Scaling in Housing Finance
The jump from ₤800 million to ₤2 billion underlines the fund’s ambition to meet growing demand and reflects government commitment to scaling up support to wider population segments. The enhanced financing is expected to serve tens of thousands more households.
Experts see this as a key structural push toward sustainable housing finance, enabling more citizens to transition from rent to ownership under manageable repayment terms.
Political, Social, and Economic Impacts
- By partnering with private banks like NEXT, the government aims to reduce pressure on public funding, while sustaining large-scale housing support.
- The upgraded digital systems will help cut down administrative friction, speed approval cycles, and improve transparency.
- As more units are purchased using formal finance, the program could stimulate the construction sector, create jobs, and deepen financial sector penetration.
What to Watch
- Rollout Timeline & Terms: How soon the new mortgage products will appear in the market, and with what interest rates and tenors.
- Uptake Among Applicants: Whether thousands of current applicants will benefit immediately.
- Service Quality & Oversight: Ensuring accountability and maintaining low default rates.
As Egypt seeks to balance social equity and financial sustainability, the expanded protocol between the Social Housing Fund and NEXT Bank marks a bold stride toward inclusive homeownership for millions of citizens.
