6 procedures awaiting the financial and business area

Many economists have been asking for many years for the government to work to transform Egypt, represented by its financial arms, especially the Egyptian Stock Exchange, into a local financial center, so that the stock exchange becomes a pool for investing in the region’s funds. , and attract direct and indirect investments to the Egyptian market..

Since President El-Sisi took responsibility, the government has begun to implement one of the most important steps to achieve this goal, by establishing the financial and business district in the new administrative capital, to establish a large financial center in to be the new capital, which has the technological and administrative infrastructure, facilities and all infrastructure components to be a good core for the financial center. The Egyptian regional center is able to attract international companies and their investments to the Egyptian market, with the unprecedented benefits that this center enjoys, not only in Egypt. but in the whole region..

Despite the establishment of a large financial district equipped with the necessary technology and facilities in the administrative capital, it must implement a number of measures or steps that will help the market to achieve this goal of transformation into a local financial center Egypt, which desperately needs to create momentum for the emerging Egyptian economy, which aims to be among the top 20 economies in the world by 2030.

The first step is that the government accepts the idea of ​​turning Egypt into a local financial center and working on its success as a national goal and not just a wish or a measure to improve the market image, by an advanced system for the Egyptian capital market that qualifies it to play its role as a local financial center, in order to establish, develop and strengthen Egypt’s financial center to The ideal choice as a leading regional station for international companies and to become financial institutions.

The second step is to immediately begin the process of reforming the Egyptian capital market system by expanding the base of traders and transactions in the Egyptian Stock Exchange, encouraging long-term investments and strengthening the foundations of disclosure and transparency in the Egyptian capital market, in addition to restructuring the laws and regulations used, and ensuring the preservation of investment freedoms in the Egyptian money market.

It is also necessary to establish standards and rules that oblige the Egyptian Stock Exchange and the Financial Supervisory Authority administrations to work together in harmony and not in competition, especially in the presence of a number of procedures and reforms in capital market legislation. , in the recent amendments to the Capital Markets Act that were finally approved by Parliament, and this will be an important building block in the process of reforming the Egyptian capital market, and turning it from an emerging market into an advanced market as soon as possible. converted..

The third step is the need to liberalize the Egyptian capital market institutions by strengthening the independence of the Financial Supervisory Authority and transforming the stock exchange into a joint stock company in which the state is the largest shareholder, in addition to formulating a law to clash. prevent the interests of the Egyptian financial market and its organizations, and the imposition of strict controls to protect the interests of small investors Minority rights in the Egyptian capital market to ensure equitable investment.

The fourth step is to work on reviving the Egyptian capital market and increasing the number of companies listed in it, through large-scale media awareness campaigns, which are not just limited to the local market, although it is the basis , but go out. to the world to make clear the benefits of the Egyptian market and its high returns to foreign investors, and to highlight Great Egyptian companies that attract foreign investors to the market..

The fifth step, which expressly announces that the capital market will not be subject to the imposition of taxes or the transfer or obstruction of funds invested abroad at any time, or at least a clear period for that, for example, 10 consecutive years, so that investors are not surprised by the imposition of taxes or fees on stock exchange transactions without initiation, as was the case in the past, which created a state of mistrust among foreign investors in the Egyptian market, and the consequence of these sudden decisions is always the sudden and massive exit of foreign investment from the market, exposing the market to cases of sudden collapse.And large losses, and then the government withdraws its decisions again after small investors most of lost their money, foreign investors fled for fear of their money, and the reputation of the Egyptian market in the b abroad deteriorates..

The sixth step, that there is a large body that includes all capital market institutions under its umbrella, and oversees all (the stock exchange, financial control, Egyptian clearing, banks, the Ministry of Finance and the Ministry of Investment) or at least there is a system of coordination between these bodies, so that the decisions issued by any party issued in coordination with and with the knowledge of other parties, so that the decisions of one party do not affect the work of another party ..

In the end, I claim that if these steps are implemented, Egypt can turn its financial market into a local financial center that will guide the emerging Egyptian economy to achieve its ambitions and meet the aspirations of the Egyptian people..

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