Egypt's Movables Security Law lets lenders take security over receivables, accounts, inventory, equipment and IP without taking possession. How it works, why registration is decisive, and the enforcement options.
For lenders financing businesses in Egypt, security over movable assets is often more valuable than real estate. Egypt's Law No. 115 of 2015 on Securing Movables created a modern framework for this, allowing security over a wide range of assets without the creditor taking possession of them.
What can be secured
The law covers a broad range of movable assets, both existing and future, including:
- receivables and bank accounts;
- inventory and stock;
- equipment and machinery;
- agricultural produce and livestock;
- intellectual property rights.
The borrower can continue to use the assets in its business. That is the key change: before the law, security over movables generally required the creditor to hold the asset.
Who can take security
The security can be granted in favour of banks and other financing institutions and companies. It is a financing tool rather than a general commercial security right.
Registration decides priority
The security takes effect against third parties from the date and time it is entered in the electronic registry supervised by the Financial Regulatory Authority. In practice:
- First to register generally wins. A registered creditor ranks ahead of other security over the same assets, subject to limited exceptions such as enforcement costs.
- Insolvency protection. Assets subject to security registered before insolvency proceedings are excluded from the debtor's general estate.
- Search before lending. Lenders should search the registry before advancing funds, and register immediately after signing.
Enforcement
If the security agreement provides for it, the creditor can enforce without a court order, for example by:
- collecting receivables directly from the borrower's customers;
- setting off against secured bank accounts;
- selling the secured assets.
Without such provisions, the creditor can apply for a court order through a procedure that is simpler than ordinary enforcement. Creditors must follow the required enforcement steps carefully, as they can be liable for losses caused by breaching them.
Practical points for lenders
- Describe the secured assets precisely, including future assets and proceeds.
- Include express enforcement rights in the security agreement, so that out-of-court remedies are available.
- Register promptly and keep registrations up to date when the financing is amended.
- Use account control arrangements with the account bank where bank accounts are secured.
- Combine with other security where needed, such as real estate mortgages, share pledges and guarantees.
Practical points for borrowers
- Check existing financing documents for negative pledges before granting new security.
- Make sure security is released and registrations are cancelled when loans are repaid.
How we can help
We advise lenders and borrowers on secured financing in Egypt, including security documents, registry searches and filings, and enforcement. Contact us to discuss your financing.
This briefing reflects the position as at November 2026.
This briefing is for general information only and is not legal advice. For advice on your situation, contact us.