Al Baraka Bank Egypt has completed its full acquisition of Amlak Finance Egypt from Amlak Finance PJSC in the United Arab Emirates. This deal, announced on October 26, 2025, strengthens the bank’s position in real estate mortgage finance and expands its non-bank financial services in Egypt after gaining all needed regulatory approvals.
This move comes as Al Baraka aims to grow its offerings in Islamic financing amid rising demand for home loans in Egypt’s booming property market. The acquisition adds a specialized unit to the bank’s portfolio, allowing it to offer more Sharia-compliant products to customers.
Deal Background and Timeline
Al Baraka Bank Egypt signed the final agreement to buy full ownership of Amlak Finance Egypt, a company focused on Islamic real estate financing. The transaction follows months of talks and regulatory checks, with the deal closing just days ago.
Amlak Finance, based in Dubai, started its operations in 2000 and grew its presence in Egypt by providing home financing solutions that follow Islamic principles. This sale marks a shift for Amlak as it refines its global strategy.
The agreement was inked by key leaders from both sides, including Al Baraka’s chief executive Hazem Hegazy and Amlak’s chairman Ahmad Salameh. No financial details were shared publicly, but sources suggest the deal aligns with market values for similar firms.
Egypt’s real estate sector has seen strong growth, with mortgage financing reaching new highs in 2025. This acquisition fits into broader trends where banks are snapping up specialized lenders to tap into urban development projects.
Strategic Benefits for Al Baraka
This purchase boosts Al Baraka Bank Egypt’s growth plan by adding expertise in mortgage finance. The bank now controls a unit with a solid track record in helping people buy homes through ethical lending.
Hegazy noted that the deal enhances the bank’s range of services and supports its parent group’s goals in Bahrain. It positions Al Baraka to play a bigger role in Egypt’s economy, especially in sustainable housing.
- Expands presence in real estate mortgage finance, a sector projected to grow by 15 percent in Egypt over the next year.
- Adds to non-bank financial institutions portfolio, diversifying revenue streams beyond traditional banking.
- Aligns with Sharia-compliant products, meeting demand from customers seeking faith-based options.
The move also promotes partnerships with developers, aiding projects that focus on green building and community growth. Al Baraka has committed to backing initiatives that drive economic progress.
In recent years, similar deals in the region have shown banks gaining from such expansions. For example, other lenders have acquired financing arms to handle rising property investments.
Role of Advisors in the Transaction
Several firms played key roles in making this deal happen. Capital Markets Advisors acted as the exclusive buy-side advisor, guiding Al Baraka through the process.
On the sell-side, Al Ahly Pharos Investment Banking provided advice to Amlak Finance. Legal and tax experts from various consultancies ensured smooth handling of regulations.
This collaboration highlights the professional approach taken by all parties. Such expertise is common in cross-border deals involving Islamic finance.
| Advisor Type | Firm Involved | Role |
|---|---|---|
| Buy-Side Financial | Capital Markets Advisors | Exclusive advisor to Al Baraka |
| Sell-Side Financial | Al Ahly Pharos Investment Banking | Exclusive advisor to Amlak |
| Legal Counsel (Buyer) | ALC – Alieldean Weshahi & Partners | Handled legal aspects for Al Baraka |
| Tax Adviser (Buyer) | Ledger Consulting Company | Managed tax implications |
| Legal Counsel (Seller) | Al Tamimi & Company | Supported Amlak’s legal needs |
These advisors helped navigate Egypt’s strict financial rules, ensuring the deal met all standards.
Impact on Egypt’s Financial Landscape
The acquisition reflects broader shifts in Egypt’s banking sector, where institutions are merging to build stronger platforms. With Egypt’s population growing and urban areas expanding, demand for affordable housing finance is surging.
Amlak Finance Egypt has built a portfolio worth billions in loans, serving thousands of clients. Under Al Baraka, it could reach even more people, especially in underserved areas.
This deal ties into national goals for economic development. The Egyptian government has pushed for more mortgage options to boost homeownership rates, which stand at around 70 percent but vary by region.
Looking ahead, Al Baraka plans to integrate the unit fully, potentially launching new products by early 2026. This could include digital tools for easier loan applications.
Future Outlook and Market Reactions
Market watchers see this as a positive step for Al Baraka, with potential for higher profits from the added services. Shares of related companies showed slight gains in recent trading sessions.
Salameh expressed confidence in Al Baraka’s ability to grow the business further. The deal positions the Egyptian unit for innovation in a competitive market.
As Egypt’s economy recovers from global challenges, such acquisitions could spark more activity in finance. Other banks may follow suit to capture market share.
We encourage readers to share this article and comment below on how you think this deal will shape Egypt’s real estate finance sector.
