The General Authority for Investment and new zones (GAFI) announced the completion of the work of the technical committee responsible for reviewing and updating the regulations governing the prior financial valuation of companies. This initiative aligns with national efforts to develop the business environment and improve the efficiency of services provided to investors. The committee's final meeting was chaired by Mr. Hossam Heiba, GAFI CEO, and attended by Dr. Dahlia El-Hawary, GAFI Deputy CEO for Institutional Development, Research, and Economic Performance, along with a group of experts and representatives from Egyptian and international accounting and auditing firms and relevant entities.
The committee's work was consistent with its technical mandate, which included reviewing and standardizing accounting concepts and professional standards applied within GAFI, reassessing valuation controls and procedures in cases of mergers, demergers, and changes in legal form, studying companies' financial structures to ensure the accuracy of technical processing, and developing a unified institutional framework for regulating prior financial valuation framework. The committee also included analyzing comparative international practices, monitoring real-world challenges, and submitting regulatory proposals that support digital transformation and contribute to improving the quality of financial and technical services provided to investors.
Mr. Hossam Heiba, GAFI CEO, affirmed that the adoption of the updated framework represents a major milestone in improving Egypt's investment climate. He explained that the new framework enhances transparency and accuracy, responds to the needs of the business community, and addresses several professional challenges identified during the development process. He added that GAFI is steadily implementing a comprehensive development program focused on updating procedures, automating services, and improving the quality of technical outputs, in line with international best practices and serving Egypt’s objectives of attracting investments.
He further explained that the next phase will involve close monitoring of the committee's outputs to ensure the recommendations are effectively implemented. He noted that any feedback or evaluations from stakeholders are welcome, aiming for continuous improvement of the work system. He also commended the efforts of the committee members, emphasizing the importance of holding regular meetings to monitor implementation and evaluate results, ensuring the achievement of the desired impact and enhancing institutional performance.
For her part, Dr. Dahlia El-Hawari affirmed that the committee adopted a comprehensive analytical methodology that included studying current models, analyzing valuation results, reviewing comparative experiences, and preparing practical and applicable recommendations. This ensures the development of the framework on sound professional foundations. She explained that implementing the updated framework will contribute to enhancing the reliability of evaluation results, standardizing procedures, and improving consistency in performance across the various departments within GAFI.
As part of efforts to support for digital transformation and the development of its information infrastructure, GAFI announced the launch of a new electronic platform for financial review services. This platform allows investors to submit and track applications electronically through a unified interface that provides real-time monitoring of procedures and instant notifications of updates. This platform represents a qualitative leap in service delivery mechanisms, as it relies on digital integration among the relevant departments. This contributes to reducing valuation time, increasing transparency, improving the quality of communication with investors, and reflects GAFI commitment to adopting the latest technological applications in developing the investment system.
GAFI affirms that the adoption of the updated framework and the launch of the new digital platform are part of a series of institutional and regulatory reforms implemented to support the competitiveness of the Egyptian economy, enhance investor confidence, and attract more local and foreign investments. GAFI also emphasizes its continued close monitoring of implementation to ensure the desired positive impact on the business community.
