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The Egyptian mortgage practice

Amr A.G. Hassanein (The American University in Cairo, Cairo, Egypt)
Mohamed M.G. El‐Barkouky (The American University in Cairo, Cairo, Egypt)

International Journal of Managing Projects in Business

ISSN: 1753-8378

Article publication date: 4 April 2008




The purpose of this paper is to evaluate the current mortgage system in Egypt.


The institutional and regulatory structures of two international mortgage systems, namely: the USA and the Malaysian were examined through an extensive literature survey. On the other hand, data on the Egyptian mortgage system were collected, analyzed, then compared to both practices.


The results identified several limitations in the Egyptian mortgage practice such as: inefficient procedures of property registration; absence of an efficient mortgage secondary market; relatively high‐mortgage lending rates; non‐existence of various types of mortgage instruments and lack of credit enhancement tools.

Research limitations/implications

The study presented several recommendations for improving the existing mortgage practice, among which were: realizing a proper secondary market and lowering mortgage lending rates.

Practical implications

By 2002, a sharp decline was experienced in the sales of housing units due to the various credit restrictions adopted by banks, coupled with high‐interest rates in relatively short amortizing periods. Accordingly, home finance process was held up, as the purchasing power of low‐ and middle‐income homebuyers was not sufficient to buy homes with such provisions. This situation imposed the need for a long‐term housing financing mechanism that would directly retrieve the residential construction sector.


This research was innovative in the sense that it directed the Egyptian Government's attention to the existence of Cagamas in Malaysia and accordingly, the first liquidity facility company in Egypt was established in June 2006.



Hassanein, A.A.G. and El‐Barkouky, M.M.G. (2008), "The Egyptian mortgage practice", International Journal of Managing Projects in Business, Vol. 1 No. 2, pp. 260-278.



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Copyright © 2008, Emerald Group Publishing Limited

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