Global Finance spoke with Hossam Heiba, CEO of the General Authority for Investment and Free Zones in Egypt, during the 2024 World Investment Conference organized by Saudi Invest and the World Association of International Promotion Agencies (WAIPA), in Riyadh, Saudi Arabia.

Global Finance: Is there a strong interest from the Egyptian private sector to be a part of the Saudi transformation?

Hossam Heiba: Yes. According to the Saudi authorities, Egyptian investors are the number one investors now in Saudi Arabia with about $20 billion USD. We are pushing for Egyptian companies to expand regionally and internationally. At the same time, we are encouraging FDIs inside Egypt.

GF: How is the business environment changing in Egypt? And what would you say to investors who might have been a little scared before?

Heiba: In 2016, the Egyptian government embarked on a major economic reform program—not only changing economic policies, but also doing a paradigm shift in the philosophy of investments. From a monetary perspective, traditionally Egypt was focused on fixing the foreign currency and protecting the Egyptian pound. Since March 2024, we have been focused on the inflationary effect, currency pricing is set according to market dynamics and so far, it has proven very successful.  Foreign currency is available in the banking sector, there is a unified pricing for the Egyptian pound and investment, as well as trade activities, are working very smoothly.

Our second challenge was fiscal policy – tax system and custom matrix. The aim is to have a clear, transparent and easy system for taxes, and at the same time, ensure the flow of goods and services to be imported and exported. We are streamlining, digitizing and reducing all the unnecessary documentation. To improve the business environment, at GAFI we are working to digitize all our processes and we have targets to reduce approval processes for permits and licenses. Approvals granted for foreigners should not exceed working 10 days, incorporation of companies 48 hours, licenses and land allocation should not exceed 20 working days. 

GF: There is a lot of talk of privatization in Egypt and IPOs. What can we expect?

Heiba: The main target, or the philosophy, is to engage the private sector in activities such as logistics, tourism, petrochemicals and telecommunication companies. For example, we have increased the floating stakes of Egypt Telecom by an additional 10%. We have also partnered with the private sector to upgrade six of our historical hotels and there is a pipeline of projects being fed with different companies. There will be more PPPs around projects like water treatment, water desalination, waste management and renewable energies. Once the company is ready to be sold either partially or fully to the investor, we do not hesitate, we really go for it. Currently, we’re working on several companies, including banks, that will be sold to strategic partners or listed on the stock exchange through IPOs. The purpose is to enhance and develop our stock exchange as well as allowing for private sector to participate in the banking sector in Egypt.

GF: What kind of partnerships are you looking to have in the banking sector?

Heiba: We’re currently selling a minority stake in Alex Bank to an Italian bank and we are setting the platform for United Bank to be sold as an IPO. For Banque du Caire, we have several offers for a strategic partner to come in.

GF: Is there a specific type of expertise that you’re trying to bring in with foreign investment?

Heiba: I think foreign expertise is definitely welcome to upgrade and enhance our banking system, but it also works the other way around I mean, international banks are looking forward to entering the Egyptian market, to make use of our existing expertise in the Middle East, the Gulf and Africa.

The post Hossam Heiba, CEO of Egypt’s Investment Authority, On Economic Reforms And A Growing Private Sector appeared first on Global Finance Magazine.