Housing investment is a key component of economic development, both because housing is a basic social need and because private home ownership is often an important source of capital for entrepreneurship at the grassroots level. A fully functioning housing market, including clearly defined titles to privately owned property, is an important element in the construction of a dynamic market economy. Developing mortgage finance helps low- and middle-income citizens to acquire ownership of housing and enables these citizens to turn housing assets into a source for financing small business activities.

Currently, there is little to no mortgage financing in Egypt. Though Parliament passed a Mortgage Law in 2001, there have been a total of only 16 mortgages completed since that time. Without mortgage financing, low- and middle-income households cannot afford to buy housing in the formal sector. Consequently, most of this part of the population lives in public housing or informal housing units with no clear legal title. The biggest obstacle to mortgage finance in Egypt is property registration, a cumbersome process with high registration fees, as well as the lack of critical legal infrastructure, particularly in terms of contract enforcement, to support it. Other issues include restrictions on extending bank credit to the housing sector; lack of valuation information; lack of credit risk information; and complex regulations.