Egyptian investment company abroad
The Egyptian government agreed to establish a joint stock company for Egyptians abroad, which includes large investors who responded to a request to participate in the establishment, or small investors wishing to preserve and grow their savings, according to a statement by Immigration Minister Ambassador Suha Gendy.
The aim of establishing the Egyptians Investment Company Abroad
Dr. Fakhry El-Feki, Chairman of the Planning and Budget Committee of the Egyptian House of Representatives, said that the aim of establishing the Egyptian company Abroad, a Company is to give an opportunity to residents abroad or Egyptians with other nationalities, whose numbers range between 12-14 million around the world, to subscribe to the company to develop their savings, and link to their home country, provided that these funds are invested in government offerings or in other investment opportunities in several fields, including real estate, tourism, education, and health.
That Egyptians Investment Company Abroad achieves a common interest for residents abroad to develop their savings, and achieve a high return, citing many Arab companies that entered the Egyptian market and were able to achieve high profit rates, including Emirati and Saudi companies that invested in real estate, and the banking sector, and the company also achieves a return for the state from attracting foreign direct investments, and achieves added value to the Egyptian economy, and increases the remittances of Egyptians abroad, which enhances the foreign exchange reserve, and resolves The dollar shortage crisis.
The Chairman of the Planning and Budget Committee of the Egyptian House of Representatives said that the capital of Egyptian company Abroad has not been settled, or the plans to subscribe to the company and its areas of investment, and these files will be worked on after its establishment through the Board of Founders, which includes businessmen investing in various sectors abroad, pointing out that the company may be an alternative to indirect foreign investments (hot money), which is an additional and sustainable source of dollars.
The board of founders of Egyptians Abroad includes businessmen including Ashraf Doss, Tamer Hedayat, Hassan Al-Jarrahi, Nasser Fouad, Wael Hassan, Adel Boulos, Omar Abdullah, and Karim Asaad, and they work in multiple sectors in different countries.
El-Feki, who previously served as an IMF expert, estimated that the size of the investments of the Egyptian company will reach billions of dollars, by encouraging Egyptians abroad to inject a large part of their income into the Egyptian investment company to achieve a high return, explaining that the average of Egyptians abroad is about 12 million Egyptians, and if an average income of $ 1,000 per month is achieved, the total income of the Egyptian investment company reaches $ 12 billion per month, if part of it is transferred to the Egyptian investment company, it will inject huge investments annually.
According to a statement by the Ministry of Immigration, a protocol was signed between the members of the founding council for a protocol to launch the Egyptians company abroad, and the protocol included the investment company’s vision and work plan, and the executive steps were agreed, which included completing the official papers for registering and launching the company, the legal position and other basic details.
Latest updates on the Egyptian government plans for issuing governmental companies
The Egyptian government plans to offer stakes in 32 state-owned companies to strategic investors or on the Egyptian Stock Exchange, as part of its plan to sell assets worth $ 40 billion over 4 years, to increase the participation of the private sector in the economy and raise the state’s foreign exchange revenues.
The country is facing a crisis in the shortage of foreign exchange in the wake of the wave of global inflation, and the Russian-Ukrainian war, which caused an increase in commodity prices, and led to a rise in the import bill, and at the same time a decrease in the state’s resources of the dollar as a result of the exit of indirect foreign investments, and a decrease in tourism revenues, and the government is trying to overcome this crisis from the development of green currency resources from export, remittances of workers abroad, tourism, indirect foreign investment, and Suez Canal revenues, which are the highest sources in terms of revenues respectively.
Investment opportunities available in the country
Chairman of the Planning and Budget Committee of the Egyptian House of Representatives enumerated the investment opportunities available in the country, including: real estate investment in new cities that are being built throughout the country, as well as in government assets in the downtown area after the transfer of ministries to the government district in the New Administrative Capital, as well as there are opportunities in education in the establishment of schools and universities, to serve the population growth, as the number of its citizens represents about a quarter of the population of the Arab world, in addition to the presence of tourism opportunities, which will witness demand with the opening of the Grand Egyptian Museum.
The Egyptian government is building 39 cities as part of its plans to double the area of the globe from 7% to 14% to accommodate the population increase, most notably: the cities of New Alamein, New Mansoura, the New Administrative Capital, and New October, and the state provides investment opportunities in the development of these cities, whether through residential, service, commercial and recreational projects.
Government plans for Reducing demand pressure on the dollar
Magdy El-Welily, a member of the House of Representatives and a member of the Chamber of Grain of the Federation of Egyptian Industries, said that he had previously called in the meetings of the parliament the need for the government to discuss activating the mechanism of mutual deals with countries that acquire a large share of trade exchange with our country, to reduce the pressure of demand for the dollar, especially since the state currently attaches importance to the agricultural and industrial sectors, which enables it to benefit from this mechanism to increase its exports and import raw materials and basic commodities from abroad, praising the interest of The government is studying the issue with Russia and other trading partners.
Egypt’s imports rose by USD 5.3 billion in 2022 to USD 94.5 billion, China in the lead with USD 14.4 billion, and Russia in fourth place with USD 4.1 billion, according to a statement by the Central Agency for Public Mobilization and Statistics (CAPMAS).
Al-Welily pointed out, that the country has already applied the mechanism of mutual deals in dealing with trade with Iraq, and exported to Baghdad aluminum, spinning and weaving, and medicines in exchange for importing phosphate, dates, oil and bitumen, and this material is used heavily in the local market in paving roads, pointing out that this mechanism may be used in trade exchange with African countries also in exchange for importing meat and grains from them.
Petroleum products topped the list of the top 10 commodities imported by Egyptَ last year with a value of $ 7.3 billion, and imported crude oil worth $ 4.4 billion and wheat worth $ 4.2 billion during the same year.
Majdi El Welily believes that the textile, food industries, and pharmaceuticals sectors are the most prominent sectors that will benefit from the application of the mechanism, especially since the government pays attention to the productive sectors in the current period through soft financing at 11% interest, golden licenses to speed up the issuance of approvals for start-up and production, and other tax incentives to encourage industrialization and deepen the local component.
A member of the Grain Chamber of the Federation of Industries estimated that Egypt will save about $ 15 billion annually from activating mutual deals with trade partners who account for the largest share of trade exchange with Egyَpt, including Russia, China, and India, and citrus products, potatoes, and peanuts can be exported to Moscow in exchange for importing wheat, pointing out that the savings achieved with these countries may contribute to achieving stability in foreign exchange, and meet the needs of importing production requirements for manufacturing.
Two factors remain to trade between Egypt and Russia in local currencies: first, linking the Central Bank of Egypt and its Russian counterpart, and second, activating mutual deals, Supply Minister Ali El Moselhy said.
