Hani Tewfik Warns on Consumer Finance and Savings
The article Focused on the escalating risks of relying on consumer financing in Egypt, where the value of granted loans increased significantly in 2026, rising by 88.5% during the first half compared to the same period in 2025. The total financing for 2025 reached approximately 96.3 billion Egyptian pounds. This rapid growth is attributed to the increased consumption of consumer goods such as electronics and cars, while the local savings rate has dropped to its lowest level at 1.2% of the gross domestic product, threatening long-term economic stability. Experts clarified that the link between consumer financing and purchases of goods, along with changes in individual behavior—such as buying items on installment plans and transferring funds into other investment assets—heightens financial risks. In response, authorities are moving toward increasing regulations to control this activity.
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