Ayman Abdel Hamid: Al-Oula targets to inject real estate financing worth EGP4.5bn
Given the fact that it is the first real estate finance company operating in the Egyptian market since February 2004, Al Taamir Mortgage Finance – Al Oula gained the confidence of financial institutions and customers thanks to its credibility and its diverse products, and continuous innovation in services provided to clients as well as its ownership structure.
Authority for being one of the leading companies in green finance and sustainability
The ownership structure includes the New Urban Communities Authority, the Housing and Development Bank, Misr Insurance Companies, Misr Life Insurance, the National Investment Bank, the Egyptian Endowments Authority, and other shareholders.
Ayman Abdel Hamid, Managing Director and Vice Chairman of the company revealed in his interview with “Osoul Misr» that the name of the company, “Al Oula ‘’ which means “the first” reflects its ambition; which is to continue success as the company No. 1 in the field of real estate finance.
Al Oula aims to achieve profits of EGP 450 million according to the five-year plan, set for 2026
He said that the company aspires to achieve EGP 450 million in annual profits, with a financing volume of EGP 4.5 billion until 2026.
He explained that the company’s equity is about EGP 1 billion, while the nearest competitor’s capital is in the range of EGP 300 million», adding that «there is no intention at the present time to increase the company’s capital, but that decision will be taken when the financing portfolio reaches EGP 10 or EGP 11 billion”.
Sustainability
The company obtained a certificate from the Financial Regulatory
Abdel Hamid said that Al Oula obtained two months ago a certificate from the Financial Regulatory Authority stating that the company is one of the leading companies in sustainability, green finance, and financing for projects using renewable energy, such as solar power plants, desalination, irrigation, and others.
He pointed out that the company contributes alongside the real estate developers in financing the clients of these projects and granting them benefits.
The company is studying the introduction of consumer financing as part of our services to allow financing for units and furnishing.
“Whoever buys in a building that depends on green construction and sustainability, benefits are granted to him. For example, the operating expenses are reduced from 2% to 1% in green building, and the cost of lending and discounting is decreased from 4% to 3%,” he explained.
Digital Transformation
Customers receive benefits/privileges in return for sustainability, including reduction of operation expenses and return rate
Al Oula company adopts a plan for digital transformation in 3 stages, the first stage actually started by preparing a mobile application to submit papers for obtaining the loan, and the purpose of this procedure is to provide facilities to customers, especially customers outside Cairo.
He added that the second stage of the digital transformation plan allows the customer to view his accounts, and then the final stage enables the customer to pay online through electronic payment methods.
New Products
He elaborated that the most important product that the company aims to introduce are consumer financing for the company’s client, who benefits from real estate financing.
This allows the client to purchase and furnish the house through real estate financing and consumer financing, i.e. buying the unit as well as furniture, electrical appliances, mattresses, and all that the client needs to live in the apartment immediately.
The funds we provided hiked to EGP 600 million over the past two months
As per the challenges, Abdel Hamid stated that the biggest challenge facing the real estate finance sector is that 95% of the real estate available in the market is under construction as well as the companies’ exposure to risks due to the failure of some developers to deliver the units or the delay in delivery.
“Therefore, the company offered many solutions that it recently presented to the competent authorities, including the presence of a body that has authority as a fourth party in the relationship between the financier, developer and customer so that the use of the granted funding is ensured in the completion of construction and follow-up of implementation rates, installments, etc., to ensure the progress of construction operations, payment of installments, and ensuring the delivery of units at the agreed upon and contracted dates,” he said.
