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AfricaJanuary 2 2006

Egypt

HSBCAdbel Salam El Anwar, Chairman & CEO
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1. What makes your country attractive to investors?

A programme of well-integrated measures is being implemented by the government to reform the political, economic, financial, regulatory and business environment. The new tax law has reduced the highest personal tax rate from 32% to 20%, halved corporate tax rate from 42% to 20% and implemented streamlined, automated tax collection procedures. Investment in Egypt is enhanced by preferential market access to the EU through the Europe Mediterranean Partnership agreement (EUTA), to the US through the Qualified Industrial Zones (QIZs), to Arab countries through the Greater Arab Free Trade Area (GAFTA) and to the African countries through Common Market for Eastern and Southern Africa (COMESA).

2. What are the economic prospects for your country over the next three to five years?

For at least the next two years, Egypt will see plenty of opportunities for growth. Privatisation is the key word for the new government. The ministry of investment has adopted an asset management approach to privatisation. All state-owned assets are treated as one pool, managed to maximise returns based on whether they are considered to be saleable assets or assets to be restructured to make them ready for sale.

3. How do you foresee the financial sector in your country changing?

The main concern is to improve the operation and services provided by capital markets, the stock exchange, the insurance sector and mortgage finance, which is still in its infancy – 2005 was marked as the year of mortgage finance. Egyptian banks are optimistic as the Central Bank of Egypt (CBE), working with a Cabinet intent on economic reform, pushed ahead with measures to overhaul the sector and attract more foreign investment.

Under a five-year restructuring plan the country’s fragmented financial industry is due for consolidation and upgrading. As well as raising minimum-capital requirements in line with Basel II standards, the Unified Banking Law gives the CBE stronger powers to oversee the sector.

4. What role will your bank play in your country’s future development?

HSBC Bank Egypt is committed to supporting Egypt’s national economic development through selective financing and investment in vital economic sectors, achieved by dedicated local and global relationship management teams.

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Read more about:  Africa , Egypt