Dr. Mohamed Farid Saleh, Chairman of the Board of Directors of the Egyptian Financial Supervisory Authority, issued two decisions regarding consumer financing; The first is to approve the establishment of the One Consumer Finance Company, in accordance with the provisions of Law No. 18 of 2020, and the second is to approve, in principle, the Qastli Real Estate Investment Company, to take measures to amend the company’s purpose with the competent administrative authority to become its purpose in the field of real estate financing and consumer financing activities.
Saleh also issued two decisions regarding real estate financing; The first is approval in principle to take the procedures for establishing the Palm Real Estate Finance Company, and the second is the approval of the establishment of the Or Real Estate Finance Company.
Muhammad Farid issued Resolution No. 1750 of 2022 approving the granting of Sky Financial Leasing Company a license to engage in factoring activity added to its purpose and registering it in the litigant registry under No. 35 of 2022 pursuant to the provisions of Law No. 176 of 2018, and the Authority’s Board of Directors Resolution No. 137 of 2018, Issuing a law regulating financial leasing and factoring activities.
It is noteworthy that what is meant by consumer financing is all forms of financing that tend to enable the borrower to purchase a durable commodity for the purpose of consumption and pay its price over an extended period of time. By commercial payment cards or payment systems, and based on their contract with a network of sellers and providers of consumer goods and services.
Consumer finance achieves multiple benefits as it contributes to increasing the demand for consumer assets and equipment that they produce in a manner that improves production efficiency and profitability, and on the part of consumers, it helps improve their living standards and their ability to purchase products that they cannot afford to pay immediately, as well as to better plan their spending, and at the level of The national economy, consumer financing mechanisms help to increase domestic demand and thus increase investment, employment and economic growth, pushing the family sector to better use of resources and to increase its ability to plan and save.
Consumer finance covers all goods and services except for goods and services subject to the laws of real estate finance, financial leasing, factoring, microfinance, or the purchase of real estate through real estate developers. Electrical and electronic.