Mohamed Omran, Chairperson of the Financial Regulatory Authority said that Egypt will probably start procedures for the IPO of enterprises owned by the armed forces in 2020.
Omran statements came during the authority’s annual press conference to monitor the harvest of non-bank financial activities during the past year.
He said that despite the coronavirus pandemic, the non-banking financial sector was able to continue its outstanding performance in serving the development plans in Egypt.
Regarding the capital markets, he explained that it recorded an outstanding performance in terms of the value of issued securities in the primary market, which amounted to more than EGP 217bn in 2021.
Taking into account the nominal value adjustment and capital reduction issues, the value amounted to more than EGP 280bn compared to about EGP 194bn in 2020, an increase of 45%.
The year 2021 also witnessed the first issuance of green bonds in the Egyptian capital market, It is a $100m issuance – equivalent to EGP 1.6bn – in cooperation with the International Finance Corporation to support the transformation of the Egyptian economy into a green economy.
The insurance activity also witnessed a good performance during 2021, as the total premiums rose to nearly EGP 48bn in 2021 compared to about EGP 40bn in 2020, an increase of 19%.
Moreover, investments of private insurance funds amounted to more than EGP 102bn in 2021 compared to nearly EGP 86bn in 2020, an increase of 20%.
In terms of financing activities, real estate financing achieved remarkable activity during 2021, recording the highest amount of financing granted since the real estate financing activity was included in the activities subject to the supervision of the FRA in 2009.
The volume of financing granted by real estate finance companies amounted to more than EGP 8bn in 2021 compared to about EGP 3.4bn in 2020, an increase of 138%.
Concerning financial leasing, the value of contracts amounted to nearly EGP 80bn in 2021, compared to about EGP 60bn in 2020, an increase of about 36%. As for factoring activity, it also recorded a remarkable increase, as the volume of discounted securities amounted to more than EGP 20bn in 2021, compared to about EGP 11bn in 2020, achieving an increase of 80%.
As for microfinance, it has witnessed a remarkable development, as the value of financing balances during 2021 amounted to nearly EGP 27bn compared to about EGP 19bn in 2020, an increase of 39%. In the field of movable guarantees, the value of advertisements approached EGP 1trn, specifically EGP 984bn, at the end of 2021, compared to approximately EGP 738bn at the end of 2020, an increase of 33.5%.
In addition, the consumer finance activity witnessed a good performance during the year 2021, as the value of consumer financing granted amounted to more than EGP 17bn compared to about EGP 8bn in 2020, an increase of 105%.