Egypt's consumer finance market has experienced substantial growth in recent years. According to a report by the Information and Decision Support Center of the Egyptian Cabinet, the value of consumer financing in Egypt has increased from around 8.4 billion Egyptian pounds in 2020 to approximately 96.3 billion Egyptian pounds in 2025. This represents an 11-fold increase over a five-year period. The growth rate for 2025 alone was 57.1%, compared to 61.3 billion Egyptian pounds in 2024.
The consumer finance market plays a crucial role in enhancing the purchasing power of consumers, supporting company sales, and stimulating domestic demand. This, in turn, has a positive impact on investment, employment, and economic growth. The market also contributes to expanding financial inclusion and providing financial services to a broader range of consumers. In 2025, the number of beneficiaries from consumer financing reached around 10.8 million customers.
The Egyptian government has introduced several regulatory measures to support the growth of the consumer finance market. In 2020, Law No. 18 was enacted to regulate consumer finance activities and was later amended by Law No. 158 in 2022. Additionally, Law No. 5 of 2022 was introduced to regulate and develop the use of financial technology in non-banking financial activities. These laws aim to enhance transparency, governance, and customer protection in the consumer finance market.
The Egyptian Financial Regulatory Authority has taken several steps to promote responsible financing and protect consumers. In September 2026, the authority issued a comprehensive guide for consumer finance companies, outlining rules and regulations for the industry. The guide covers various aspects, including licensing, governance, and risk management. The authority has also mandated the use of a verification code (OTP) for financing contracts and transactions.
The global consumer finance market has also experienced significant growth in recent years. According to Research and Markets, the market is expected to grow from approximately $1.69 trillion in 2025 to $1.81 trillion in 2026, representing a compound annual growth rate of 6.9%. This growth is driven by the increasing adoption of digital lending platforms, the use of artificial intelligence in credit evaluation, and the expansion of "buy now, pay later" services.
The use of technology is becoming increasingly important in the consumer finance market. The use of artificial intelligence and data analysis enables more accurate credit evaluation and personalized financing options. Additionally, the growth of digital lending platforms and "buy now, pay later" services is expected to continue in the coming years. In the European Union, for example, new loans worth 484 billion euros were granted in 2024, representing a 3.2% increase compared to 2023.
The growth of the consumer finance market is also driven by the increasing demand for sustainable and green financing options. Many financial institutions are now offering preferential terms for financing environmentally friendly assets, such as electric vehicles. As the market continues to evolve, it is likely that sustainable financing options will become increasingly important.
Key points
- The value of consumer financing in Egypt has increased from around 8.4 billion Egyptian pounds in 2020 to approximately 96.3 billion Egyptian pounds in 2025.
