Tamweel Marks Historic EGP 5.52 Billion Sukuk Issuance, Reshaping Egypt’s Mortgage Finance Landscape

Tamweel for Real Estate Finance held a major celebration. The event marked a historic financial achievement: the successful issuance of the first Mudaraba sukuk of its kind in the Middle East. This sukuk aims to finance a large acquisition.

The celebration highlighted Tamweel’s success in securing EGP 5.52 billion in Mudaraba sukuk financing. This funding will finance its strategic acquisition of an under-construction real estate unit portfolio. The Arab Company for Projects and Urban Development, a Talaat Moustafa Group company, owns the portfolio.

Mohamed El Kahky, Managing Director of Tamweel Group and Head of the Egyptian Mortgage Finance Association, stated that sukuk are more than a financing tool. He emphasized they confirm market confidence in asset quality and financial solvency. El Kahky added that Egypt is an attractive investment market and a regional hub for Islamic financial innovation.

El Kahky further stated this issuance represents a historic step for Tamweel Group. It marks their first sukuk issuance and the first for a mortgage finance company in the Egyptian market. He noted the high credit rating (AA-) reinforces their strategy to diversify funding sources through innovative, non-traditional instruments.

This strategic step aligns fully with the group’s expansionary vision, El Kahky explained. It complements three consecutive securitization issuances, totaling EGP 5 billion. A fourth issuance is currently underway, expected to push cumulative issuances past EGP 7 billion. This achievement culminates diligent efforts by the team and partners, confirming the group’s commitment to financial market leadership.

El Kahky extended gratitude to all supporting entities. He stated, “We are grateful to all our partners and parties who contributed to this achievement.”

The achievement resulted from exemplary cooperation, El Kahky clarified. The initial sukuk offering project involved several key partners. These included real estate developer Talaat Moustafa Company, Tamweel, and Al Ahly Pharos as issuance advisor. Al-Derini & Partners served as legal advisor, Baker Tilly for account monitoring, and MERIS for credit rating. RSM Egypt acted as the independent financial advisor. This collaboration encouraged banks to subscribe and cover this new type of sukuk. Al Ahly Pharos, National Bank of Egypt, Suez Canal Bank, Arab African International Bank, and Al Baraka Bank Egypt guaranteed the subscription coverage. Several other banks, including Abu Dhabi Commercial Bank, Industrial Development Bank, Emirates NBD, and Faisal Islamic Bank, subscribed to the issuance. This strong participation indicates investors’ keen interest in innovative issuances and portfolio diversification. [Learn more about Egypt’s growing financial sector](https://www.reuters.com/markets/africa/).

The Financial Regulatory Authority’s (FRA) regulatory role in protecting market parties and ensuring their rights is highly valued. This role helps the real estate market grow logically and strongly. FRA data for the first eight months of 2025 revealed a strong jump in Egyptian mortgage finance activity. The number of contracts reached 9,840, totaling EGP 25.1 billion. This compares to 6,543 contracts valued at EGP 14.1 billion during the same period in 2024. This represents a 50.4% growth in contract numbers and a 77.7% increase in financing value. The figures reflect sustained momentum in the mortgage finance market, driven by high demand for residential units and companies expanding diverse financing products.

A special tribute was extended to the Financial Regulatory Authority, led by Dr. Mohamed Farid. This tribute acknowledges their support and effective contribution to this pioneering step. It confirms the FRA’s role in fostering innovation within the Egyptian finance market.

Karim El Batouty, Deputy Managing Director of Tamweel, emphasized the deal’s importance during the ceremony. He stated, “We celebrate today not just the massive financial figure, but the leadership we demonstrated in adopting innovative and complex Islamic finance solutions to support real estate growth.” El Batouty added that this issuance marks a milestone for Tamweel, strengthening its position as a key sector player. It also confirms the strong partnership with Al Ahly Pharos and other advisors.

El Batouty praised the cooperation with Al Ahly Pharos. He noted the strong demand for sukuk coverage reflects significant investor confidence. This confidence, he explained, stems from Tamweel’s strategic vision and the strength of the acquired real estate asset portfolio.

El Batouty concluded by extending sincere thanks to their success partners, advisors, and every team member. He acknowledged their dedication of time, effort, and expertise. Their support, he stated, was essential in transforming this vision into reality.