Ministry of Investment and International Cooperation (MIIC) stated that September 2017 witnessed an increase in new investments by 27%, compared to September 2016. The total new investments, represented by paid-in capital of new companies and capital expansion of existing businesses, grew by 26.9%, reaching EGP 2.4 billion, compared to September 2016, which stood at EGP 1.9 billion.
In its monthly bulletin, MIIC stated that paid-in capital of established companies in September 2017 increased by 271%, reaching EGP 790 million compared to EGP 213 million in September 2016. During the same month, the total number of newly established companies and companies which witnessed capital expansion increased by 48.6%; a total of 1,367 companies divided into 915 newly established companies and 452 companies that raised their capital, compared to a total of 920 companies in September 2016.
The ministry stated that the services sector dominated the list of companies established, representing 46.4%, followed by the industry sector, representing 29.5%. The construction sector represented 10.1% of total companies established, followed by the telecommunications, agriculture, and tourism sectors. In addition, new companies established in September are expected to provide about 4.4 thousand job opportunities.
With regards to dispute settlement and solving investors' problems, the ministry stated that, between the 20th session on February 26th, 2017 and the 27th session on October 1st 2017, it addressed 269 subjects estimated to represent an investment value of EGP 5.6 billion.
Moreover, the ministry launched, in partnership with the United Nations and EFG-Hermes, the "Fekretak Sherketak" initiative (which loosely translates to 'your idea is your company') to promote start-up companies. Three pieces of land for investment zones were offered and developed in Benha, Elsaff, and Meit Ghamr regions to generate revenue from: aluminum factories in Meit Ghamr; refractory companies in Elsaff and; food processing businesses in Benha. Additionally, the board of directors of the General Authority for Investment and Free Zones (GAFI) agreed on establishing four investment zones in Suez and Luxor dedicated for small and medium industries.
With regards to promoting and attracting more national, Arab, and foreign investment, the ministry announced the return of the Multilateral Investment Guarantee Agency (MIGA) to the Egyptian market. MIGA has announced its offering of US$ 210 million worth of guarantees and the opening of a second factory for the Egyptian Japanese company (SE Wiring Systems Egypt) in the 6th of October city dedicated to the production of automotive wiring harnesses. The factory's capital is approximately EGP 200 million, and 40% of its offered job opportunities target women.
MIIC also stated that - with regards to non-banking financial services - trading on the EGX 30 index increased during September 2017 to close at 13880 points with an appreciation of 3.5%, while medium stocks also increased as EGX 70 appreciated approximately by 11.7%. Total trading value reached EGP 21.4 billion while the Nile Stock Exchange trading value reached EGP 33.6 million. The tourism and recreational sectors scored the highest positive return during September 2017 reaching 35.3%, and market capitalization reached EGP 749 billion for exchange trading on the listed securities market. Transactions by Egyptians represented 73.1% of total transactions in September 2017, while non-Arab foreigners acquired 17% and Arabs acquired 9.9% of total transactions traded. The net purchase by non-Arab foreigners reached EGP 628.9 million, while net purchase by Arabs recorded EGP 116.4 million.
With regards to mortgage finance, the ministry stated that financing increased between January 2017 and July 2017 by 78.7% compared to the same period last year, as financing granted by companies reached EGP 1 billion. Financial leasing also increased during the same period by 23% reaching EGP 18.9 billion compared to EGP 12.9 billion in the same period last year. The number of companies registered in the Egyptian Financial Supervisory Authority (EFSA) reached 225 by end of July 2017 compared to 22 companies in July 2016. Microfinance grew by 23% during the first half of 2017, as the financing balances of non-governmental associations and companies reached EGP 5.5 billion by the end of the first half of 2017 compared to EGP 4.5 million in December 2016. The number of microfinance beneficiaries increased by 10% as of June 2017, exceeding 2 million beneficiaries.
The Ministry stressed that some of the most important initiatives affecting the non-banking financial services sector this month were: the signing of two protocols between GAFI and the Egyptian Stock Exchange and between GAFI and MCDR to facilitate the registration procedures of company securities and; EFSA's board of directors establishing, for the first time, registration controls for mortgage valuation companies within EFSA's registry. Also, for the first time, EFSA issued a decree regulating microinsurance and clarifying the controls that make online issuance and distribution of microinsurance documents possible. Additionally, EFSA signed an agreement concerned with the establishment and management of the movable guarantees registry.
Finally, the ministry stated that the most important indicators of development and international cooperation are: total external financing and grants reaching US$ 25.5 billion by the end of June 2017, with drawdown levels reaching US$ 16.5 million compared to US$7.9 billion on September 30th, 2015; the approval by the Arab Bank for Economic Development in Africa to grant Banque Misr a US$ 50 million credit line, subject to renewal, to support and assist Egyptian investors with accessing African markets and; the signing of seven agreements with Armenia in the conclusion of the fifth session of the Egyptian Armenian inter-agency committee in Yerevan.
