Cairo, Egypt (CNN) – Officials from Egyptian business organizations praised President Abdel Fattah El-Sisi’s decisions to support the economy in tackling the global economic crisis, and to strengthen the role of the private sector in participate more in economic development, through the Private Sector Management Asset Management Program with a target of $ 40 billion over 4 years.
Businessmen stressed that the decisions reflect the state’s interest in attracting foreign investment, giving more opportunity to private sector companies to invest in new activities, in addition to paying attention to the role of the capital market in attracting investment and increasing the number of companies offered, whether owned by the government or the armed forces.
The Egyptian president announced 13 decisions during the Egyptian family’s breakfast party on Tuesday, the most important of which was to instruct the government to hold an international press conference to launch the Egyptian state’s plan to deal with the global economic crisis. initiative to support and localize national industries to rely on local product and reduce imports, and instruct the government to announce a participation program The private sector in state-owned assets with a target of $ 10 billion annually For a period of 4 years.
Mohamed Maher, chairman of the board of the Egyptian Security Association-ECMA, said that Sisi’s decisions focused mainly on the economy, especially the money market, indicating the political leadership’s interest in the need to focus efforts on the global economic to address crisis. , and the decisions gave a clear indication of the state’s tendency to give more opportunity to the sector, the private sector to contribute to the economy, and that the state’s competition with the private sector in economic activities with the aim was to control prices and confront monopoly, and that the coming period will show a strengthening of the role of the private sector in development.
The Egyptian government is scheduled to announce, after the Eid al-Fitr holiday, the details of the state ownership policy document, which is a national strategy aimed at expanding the base of private sector participation, through state-owned assets announce and draw up a timetable. for the state’s exit from various activities in phases, while other sectors will be determined.The state will be there on an ongoing basis, according to official statements by Prime Minister Mostafa Madbouly.
Maher added, in exclusive statements to CNN in Arabic, that Sisi’s mandate to the government to announce a program for private sector participation in state-owned assets was an ambitious decision, and I think it was directed on the participation of the local and foreign private sector, noting that the Egyptian state has succeeded in creating the climate to attract foreign investment By injecting large investments into the supply of energy, the construction of roads and axes, and the issuance of new legislation, attracting foreign investment has become a priority on the government’s agenda.
Regarding the Egyptian president’s decisions related to the capital market, the president of ECMA emphasized the importance of the stock market’s role in attracting foreign investment through the acquisition of the assets of companies listed in the capital market. , adding that Sisi’s decisions are aimed at developing the stock. exchange, either by increasing the supply by the number of listed companies, whether by companies listed in the government’s supply program or by companies in the private sector or on the demand side by targeting government agencies that have high liquidity surpluses, such as the Social Security Authority , the Post and the banking system to invest in the stock market to improve the demand side and improve investment in the companies that will be offered soon, which changes the ownership structure of investors in the stock exchange, by relying on institutions that are capable to absorb suggestions.
Al-Sisi has instructed the government to present an integrated vision for the promotion of the stock market aimed at doubling the sizes and numbers of companies whose securities are listed, local and foreign investors and various institutions, and to start offering state-owned shares. companies on the stock exchange, including companies owned by the armed forces, before the end of this year.
Mohamed Maher referred to the proposals of the companies owned by the armed forces on the stock exchange, of which the nearest are Safi and Al-Watania companies, which operate in the food and petroleum products sectors, and emphasized that the two companies offered at attractive prices. for investors is a motivating factor for the market to move positively during the coming period.
Mohamed El-Bahi, a member of the Board of Directors of the Federation of Egyptian Industries, said that Sisi’s decisions indicated the state’s tendency to strengthen the role of the private sector, and that the role of the government was limited. to an observer of economic activities. and adds that providing a greater role for the private sector in economic development will achieve a double return, either for the private sector by providing him with new high-yield investment opportunities and at the same time for the government through the return on its to maximize assets.
Al-Bahi added, in exclusive statements to CNN in Arabic, that the decisions could contribute to the increase in the dollar yield for Egypt to the effects of the decline in the cash reserve due to the global economic crisis and the Russo-Ukrainian war the head to offer. , to comply with the importation of basic commodities to supply them to the local market.
The Federation of Egyptian Industries has issued a statement declaring its full support and support for the Egyptian president’s support for the role of private and foreign investment.
The Federation of Egyptian Industries also emphasized the readiness and readiness of Egyptian, Arab and foreign manufacturers and investors to exploit investment opportunities in various industrial sectors and take advantage of industrial initiatives to meet the needs of local market and export abroad, especially in view of the various competitive, geographical and economic advantages that Egypt enjoyed.