Tamweel Mortgage Finance has issued the Middle East’s first Mudaraba sukuk for acquisition financing, raising EGP 5.52 billion in a transaction that sets a new benchmark for Islamic finance in the region.

The sukuk proceeds will be used to finance Tamweel’s strategic acquisition of a portfolio of under-construction residential units owned by the Arab Company for Projects and Urban Development, a subsidiary of Talaat Moustafa Group.

Mohamed El-Kahky, Managing Director of Tamweel Group and Chairman of the Egyptian Mortgage Finance Union, said the issuance reflects strong market confidence in the company’s asset base and financial position.

"Sukuk signals trust in our asset quality and financial strength," El-Kahky said, noting Egypt’s growing role in regional Islamic finance.

This is Tamweel’s inaugural sukuk and the first by an Egyptian mortgage finance company, receiving an AA- rating and showcasing a strategic diversification of funding sources through innovative instruments.

El-Kahky said the deal aligns with Tamweel’s broader expansion strategy, following three securitization issuances totaling EGP 5 billion. A fourth issuance is currently in preparation and is expected to push cumulative issuance volumes beyond EGP 7 billion.

The sukuk was structured with Talaat Moustafa Group, with Al Ahly Pharos as issuance advisor and supported by legal, audit, ratings, and financial advisors.

Subscription coverage was provided by a consortium of banks, reflecting strong investor interest in Islamic finance instruments.

The company also recognized the Financial Regulatory Authority's role in fostering market growth, noting significant increases in contracts and financing value during 2025.

Karim El-Batouty, Deputy Managing Director of Tamweel, called the transaction a pivotal moment, underscoring its transformative impact on the company.

"This issuance shows our ability to deploy advanced Islamic financing for real estate," El-Batouty said. "It solidifies Tamweel’s position and highlights our partnerships."

He added that strong subscription levels reflect investor confidence in Tamweel’s strategy and the quality of the acquired asset portfolio.