Ministry of Investment and International Cooperation stated that Septembr 2017 has witnessed an increase in the new investments that have reached to 27%, compared to September 2016. The total new investments, represented in paid-in capitals of new companies, and companies that expanded by 26.9% reaching 2.4 billion EGP compared to September 2016 where it reached 1.9 billion EGP, has increased".
"Paid-in capitals of established companies have increased by 271%, compared to September 2016," MIIC added in its monthly bulletin, "These capitals have reached to 790 million EGP compared to the amounts achieved of 213 million EGP in September 2016. The total number of new established companies and the expanded companies have increased by 48.6% in September 2017; 1367 companies divided into 915 new companies and 452 existing companies that have expanded, compared to 920 companies in September 2016. Capital export has increased by 6.2%, reaching 4.7 billion EGP, in September 2017 compared to September 2016."
The ministry stated that the services sector has headed the list of the companies established by 46.4%, after which the industry sector followed by 29.5%, then the construction sector by 10.1%, after that the telecommunications, agriculture, and tourism sectors. In addition, the new companies established in September are expected to provide about 4.4 thousand job opportunities.
On the level of disputes settlement and solving investors' problems, the ministry stated that it has addressed 269 topics with an estimated value of 5.6 billion EGP of investment from the presented disputes, where the period extended from the twentieth session held on February 26th, 2017, to the twenty-seventh session on October 1st, 2017.
Moreover, in September, the ministry has launched, in partnership with the UN and Hermes, "Fekretak Sherketak" initiative to promote start-ups. Three pieces of land of investment zones have been offered and developed in Benha, Elsaff, and Meit Ghamr for the purpose of increasing investment revenues for these zones through establishing aluminum factories in Meit Ghamr, refractories factory in Elsaff, and other food processing factories in Benha. The board of directors of the General Authority for Investment and Free Zones (GAFI BoD) has agreed upon establishing four investment zones in Suez and Luxor specialized in small and medium industries.
While on the level of promoting and attracting more national, Arab, and foreign investment, the Multilateral Investment Guarantee Agency (MIGA) announced its comeback to the Egyptian market through offering $210 million-guarantees, opening the second factory of the Egyptian Japanese company (SE Wiring Systems Egypt) in the 6th of October city to produce automotive wiring harness. The capital of the new factory estimates 200 million EGP, and it provides 40% of job opportunities to women.
MIIC referred that on the level of non-banking financial services, EGX 30 index has increased during September 2017 trading to close at 13880 points with an appreciation of 3.5%. The medium stocks has increased as well where EGX 70 has appreciated approximately by 11.7%, and the total value of trading reached 21.4 billion EGP. Nile Stock Exchange trading value reached 33.6 million EGP, and the sector of tourism and recreation scored the highest positive return during September 2017 reaching 35.3%. Market capitalization has reached 749 billion EGP for the restricted stocks in listed securities market. Egyptians' transactions acquired 73.1% from the total transactions percentage of September 2017, while the transactions of non-Arab foreigners acquired 17% and the Arabs transactions acquired 9.9%. The net purchase of non-Arab foreigners recorded 628.9 million EGP, while the net purchase of Arabs recorded 116.4 million EGP.
As for the mortgage finance, the ministry mentioned that financing has increased in the period between January 2017 and July 2017 by 78.7% compared to the same period last year, as the financing granted by companies reached 1009 million EGP. Financial leasing has increased in the period between January and July of 2017 by 23% reaching 18.9 billion EGP compared to 12.9 billion EGP in the same period last year. The number of companies registered in the Financial Supervisory Authority has reached 225 by the end of July 2017 compared to 22 companies by the end of July 2016. The growth of microfinance increased by 23% throughout the first half of 2017, as the financing balances of non-governmental associations and institutions and companies has reached 5.5 billion EGP by the end of the first half of 2017 compared to 4.5 million EGP by the end of December 2017. The number of beneficiaries of microfinance has increased by 10% until the end of June 2017; exceeding 2 million beneficiaries.
MIIC clarified that signing two protocols for GAFI with the Stock Exchange and MCDR to facilitate the proceedings of registering the securities of companies, is one of the most important proceedings and developments of non-banking financial services. The board of directors of the Egyptian Financial Supervisory Authority (EFSA) established controls to register mortgage valuation companies in the authority's registries for the first time. EFSA issued a decree to organize micro insurance in Egypt for the first time, and to determine the controls that provide the possibility of issuing and distributing its documents online. EFSA signed a contract concerned with the establishment and management of movable guarantees registry.
As for the most important indicators of development and international cooperation, the ministry mentioned that the total amount of financing and grants reached $.25.5 billion by the end of June 2017, while the drawings reached $16.5 million in 30 of June 2017 compared to $7.9 Billion in 30 of September 2017. September has witnessed the approval of the Arab Bank for Economic Development in Africa to grant Banque Misr a $50 million credit line, subject to renewal, on favorable terms to support and assist the Egyptian investor to access the African markets. In addition, seven agreements have been signed with Armenia in the conclusion of the fifth session of the Egyptian Armenian inter-agency committee in Yerevan.
