Islam Azzam, Deputy Chairperson of Egypt’s Financial Regulatory Authority (FRA), announced that the education sector has secured EGP 2bn through three securitisation issuances, marking a significant step in the development of non-banking financial tools to support education in Egypt.
Speaking at the 4th Annual Education Investment Summit, Azzam outlined the FRA’s expanding toolkit to attract investment in education and enhance its long-term sustainability. He pointed in particular to the growing use of future cash flow securitisation, which allows educational institutions to monetise projected revenues—providing crucial liquidity for infrastructure development and service expansion.
“Between 2022 and 2024, we’ve seen meaningful progress in securitisation, with education playing a leading role,” Azzam said. “This mechanism allows institutions to diversify funding sources, reduce capital costs, and accelerate the construction of new schools—contributing directly to improved education outcomes.”
Azzam also highlighted the strategic role of insurance in protecting both human capital and infrastructure in the education system. Coverage is already provided to students at all educational levels through the state-run insurance fund, including Al-Azhar institutions. This coverage includes protection against accidental or natural death, injury, and disability.
The FRA is also working to expand education-specific insurance products, including policies that allow families to continue paying tuition in the event of a parent’s death or disability. Plans are underway to broaden health insurance for students and provide comprehensive risk coverage for schools and universities.
In addition, Azzam discussed efforts to align academic training with job market needs—especially in the insurance and finance sectors. A notable initiative involves collaboration between the Insurance Federation of Egypt and local universities to develop actuarial education programmes, sponsored by the FRA.
He stressed that capital markets offer a variety of funding tools, including sukuk and securitisation bonds, even for companies not publicly listed. Recent changes to accounting standards now allow institutions to revalue assets based on market price, opening further financing avenues.
Other non-banking solutions include lease finance, which is being used to secure buildings, equipment, and transportation services with flexible repayment terms ranging from three to five years.
Meanwhile, consumer finance products are helping students and families manage the costs of tuition, school supplies, books, and even postgraduate and professional education. “These tools are essential for expanding access and embedding a culture of lifelong learning,” Azzam noted.
