Flotation had positive results on Egypt’s economy: CI Capital

CAIRO – 30 January 2018: The decision to float the Egyptian pound in November 2016 had a clear impact in increasing the gross domestic product (GDP) and foreign reserves growth rates, and helped the government treasury-bills attract $19 billion in cash flows, Managing Director and Head of Brokerage at CI Capital Karim Khedr said during CI Capital’s second MENA Investor Conference, which kicked off in Cairo Tuesday.

He added that the float helped in reducing the budget deficit, eliminating the parallel market, with foreign reserves at the Central bank of Egypt (CBE) reaching $ 37 billion.

This is in addition to economic growth of 4.2 percent during the last fiscal year, compared to 3.5 percent expected by the International Monetary Fund (IMF) during 2017, Khedr added.

He also praised the role played by Arab governments to improve the investment environment in the region, and their seriousness in the process of economic and social reform by adopting new policies to push the growth of the private sector and allow for participation in the management of state-owned assets.

Khedr said that the results of the economic reforms, undertaken by several Arab governments to achieve high and sustainable growth, have yielded a positive return on these economies, one year after implementation.

Local financial services group CI Capital commenced its second MENA Investor Conference in Cairo on Wednesday, with the participation of 200 investors from 75 leading global institutional investment firms, with aggregate assets under management (AUMs) in excess of $10 trillion, according to a statement from CI Capital.

CI Capital is an investment bank in Egypt with market-leading investment banking, securities brokerage, asset management and research franchises.

The conference allows the participants to meet with ministers, senior government officials, and top listed companies on the Egyptian and Arab stock exchanges.

The gathering tackles the results of financial reforms undertaken by several governments, as well as the most important and compelling investment opportunities in the Middle East and North Africa (MENA) region. It will also shed the light on efforts to enhance such growth opportunities, creating a channel for local, regional and global investors.

"The willingness of key policy makers to attend and participate in the conference reflects the positive sentiment that officials are keen to relay. It is also evidence of the greater level of transparency necessary to drive a clear roadmap for investors with medium and long term horizons, inspiring a fruitful partnership between the public and the private sectors in reaping the fruits of the economic reform and investment opportunities during the coming period," Mahmoud Attalla, Chairman and Group CEO of CI Capital said in the statement.

The conference will run until February 1 and will be attended by Minister of Investment and International Cooperation Sahar Nasr, Trade Minister Tarek Kabil, Minister of Public Enterprises Khaled Badawi, Deputy Minister of Finance Mohamed Moait, Sub-Governor of the CBE Rami Abul Naga and Chairperson of the Egyptian Exchange Mohamed Farid, among others.