Financial Services
From The Report: Egypt 2022
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Years of careful financial regulation have helped to create a robust banking system. The sector has continued to boast low levels of non-performing loans, high capital adequacy ratios and sufficient provisioning. As a result, by 2022 it was clear that Egypt had avoided some of the worst economic consequences of the Covid-19 pandemic seen elsewhere. As of April 2022 around two-thirds of Egypt’s population remained outside the banking sector, underscoring opportunities in the sector. However, new challenges arose with Russia’s invasion of Ukraine in February 2022. Turbulence in capital markets led to a significant squeeze on foreign exchange liquidity, with the Central Bank of Egypt issuing restrictions on non-strategic imports in the first quarter of the year. Overall, the 2022-23 period is likely to continue to bring volatility to global financial markets. This chapter contains an interview with Hussein Abaza, CEO, Commercial International Bank.

Articles from this Chapter

Overview

Broaden the base: Lending to small firms and the adoption of digital tools have been identified as key enablers of financial inclusion
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Even when faced with complex regional politics, currency fluctuations and the impact of global crises such as the Covid-19 pandemic, Egypt’s banking sector remained resilient amid wider economic pressures in recent years. Part of this is attributed to the sector’s size – with Egypt having the largest banking system in North Africa – and stability. The industry has played an important role in economic development in one of the most dynamic markets in the region, where a large segment of the…

Interview

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Analysis

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Egypt has invested heavily in improving transport, housing and energy infrastructure in recent years. The government has been moving to establish new railway lines, renovate seaports and airports, and improve road networks (see Transport chapter). It has built new power plants, established new urban areas and expanded the country’s strategic Suez Canal. Much of the government’s current strategy has been aimed at modernising the economy though a revamping of its infrastructure. These efforts have…

Overview

Hedging against volatility: The stock exchange navigates reform against a backdrop of unpredictability in the global market
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With reforms steadily changing the nature of Egypt’s economy, capital markets are finding new footing in an increasingly competitive region. The long-term growth prospects for the Egyptian Exchange (EGX) are closely linked to macroeconomic performance, as a host of development projects and regulatory upgrades have helped to keep GDP growth rates up. In the near team, however, inflationary pressure – worsened by Russia’s late February invasion of Ukraine and its effects on fuel and food prices…

Overview

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The insurance sector’s ongoing reform process has strengthened the regulatory environment and fundamentals remain relatively solid. While some regulations have placed new demands on insurers, the fact remains that the country’s low level of insurance penetration translates to significant unexplored potential – and further regulatory reforms are expected to increase the number of compulsory products. Nevertheless, insurance providers will need to navigate economic uncertainty in order to take…

Analysis

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Interview

Targeted approaches: Ayman Kandeel, CEO, AXA Egypt, on leveraging innovative solutions to increase awareness and penetration
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