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400 private, government sector representatives to discuss financial leasing legislation - Daily News Egypt

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400 private, government sector representatives to discuss financial leasing legislation

Partnership Development conference seeks to integrate financial leasing in economic development plans

The third Partnership Development conference will begin on 10 November, on the role of financial leasing in supporting major national projects and small and medium-sized enterprises (SMEs) in the coming period.

The conference is set to kick off with the participation of 400 private and government sector representatives.

More than 30 leasing companies will participate in this conference and will present their future plans for expansion in the Egyptian market, and their new quality policies aimed at simplifying procedures for rental of equipment, agricultural machinery, and medical devices. They will also offer support to various projects in the fields of industry, trade, transport, housing, information technology, energy, and construction.

Participants at the conference will discuss increasing investments through increasing financial leasing in various economic projects, to contribute effectively to the development of the national economy, which targets a 5% growth rate in the current fiscal year, raising the rate to 7% by 2018.

Participants at the conference will also discuss how to direct sources of funding towards productive sectors of the economy and how to increase the available financing alternatives to the private sector. They will also discuss how to solve the corporate liquidity crisis, under the direction of the state towards the promotion of the financial leasing legislation and developing the capacities of financial institutions. This is all in addition to increasing awareness of the benefits of financial leasing to the business sector.

During the conference, Minister of Investment Ashraf Salman will review the ministry’s plans to activate financial leasing and integrate it into the overall economic development plans adopted by the state during the current period, as well as its role in financing projects through the development of legal and regulatory mechanisms and legislations.

Minister of Communications and Information Technology Yasser Al-Qadi will participate in the opening session of the conference, where he will review the role of the financial leasing sector as one of the most prominent solutions of non-banking financial means that can help technology companies in reducing the investment cost of starting the activity, and the provision of servers and necessary technical solutions. This will reflect on the performance of companies which qualifies them to compete with their products and services, and to expand and spread.

It will also enable companies to compete on regular tenders offered by the Ministry of Communications and its subsidiaries, as well as administrative and technological development projects by the state and its institutions.

The financial leasing experts will discuss the world’s experiences in the field of developing financial leasing markets, especially in the US and China, in which financial leasing is expected to reach about $1tn by 2016, becoming the biggest market in the world. That is in addition to presenting the procedures needed in order to strengthen the business environment in that field, in a way that contributes to stimulating the growth and diversity of this mechanism in the Egyptian market.

Chairman of the Egyptian Financial Supervisory Authority (EFSA) Sherif Samy said this conference is taking place at an important time, to push the growth of this sector through serious and effective transparent discussions between the associated parties, in light of the Egyptian economy’s need for non-traditional financing tools.

He added that the conference will highlight the role of financial leasing in supporting the implementation of national projects announced by the government. This will be through providing the required funding to enable construction companies working in various fields to renew their equipment, and providing the necessary equipment for small and micro projects, which may provide millions of jobs.

Samy noted that the EFSA’s business plan will be revealed during the conference concerning the development of laws and creating a suitable legislative environment for investment, based on the recent amendments made to the real estate financing law and the law regulating the collateral of movable assets that led to the increasing investments in financial fields, including financial leasing as well as education and training.

The initiative launched its first conference on 19 April, entitled “The government, developer and contractor – A partnership for development”. It was held under the slogan of “The new Egyptian experience for reconstruction”, and under the auspices of the Minister of Housing.

The second conference was on 12 May, entitled “Real state financing development partners in Egypt”, in which the opportunities and challenges facing the sector were reviewed as well as the sector’s role in achieving economic and social development, under the patronage of the Minister of Investment.

Topics: government SMEs

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