• Home
• News

The Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has issued Egypt’s first national standards for the valuation of machinery, equipment and infrastructure, marking a new step toward establishing a comprehensive framework for asset valuation in the country.

The standards were introduced under FRA Board Resolution No. 191 of 2026 and are designed to complement the recently issued Egyptian real estate valuation standards. Together, the frameworks aim to improve the quality, transparency and consistency of valuation practices across Egypt’s non-banking financial sector.

According to the FRA, the new standards will support a range of activities, including financial leasing, asset-backed financing, project finance, corporate restructuring, acquisitions and asset revaluation.

The framework provides unified professional guidelines for valuing tangible assets used in manufacturing, production, the supply of goods and services, leasing, or administrative purposes. It takes into account factors such as technical specifications, production capacity, remaining useful life, physical condition, maintenance requirements, operating costs, technological characteristics and potential alternative uses.

The standards adopt three main valuation approaches: the market approach, based on comparable sales; the income approach, based on the asset’s expected cash flows; and the cost approach, which estimates replacement or substitution costs.

The FRA also included practical guidance for equipment inspection, covering examination procedures, documentation requirements and the assessment of inspection results.

The authority said the standards are aligned with the latest applicable International Valuation Standards (IVS), in force since 2025, while also taking into account Egypt’s local legislative and regulatory framework.

The FRA stated that the new valuation framework is intended to strengthen professional independence, objectivity, transparency and comparability, while supporting investor and financing institution confidence in the Egyptian market.

The decision is expected to be published in the Official Gazette and on the FRA’s website in the coming days. It will take effect on the day following its publication.