Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), said that the authority is taking rapid steps to implement the Cairo International Financial Center (CIFC) as soon as possible, explaining that the expected investments range between $2-3bn.
Heiba told Daily News Egypt that the memorandum of understanding signed in March between the GAFI and the CIFC consortium regarding the establishment of the Cairo International Financial Center in the New Administrative Capital stipulated that implementation should begin within 12 months.
He mentioned that the state primarily aims to achieve its economic goals and attract capital and direct investments through the centre. CIFC role will be to assist investment flows to and from Egypt, through all categories of financial products in and outside Egypt.
He explained that the broad lines of the legislation were discussed in a meeting with Egypt’s Prime Minister at the beginning of this week.
“We emphasised that legislation should be a catalyst for all service activities that the centre will provide to companies in the coming period.”
Heiba explained that these flows and products will be redistributed and exported to the world through local and foreign financial institutions such as banks, foreign exchange markets, capital markets, insurance companies and various financial intermediaries, through contracts, financial operations and transfers.
He pointed out that CIFC, according to the current studies, will be established as a financial city that operates according to the systems and business models of similar international centres.
Cairo International Financial Center’s main target will be to facilitate access to international finance and investments to finance entrepreneurial risks and develop capital markets, industries and infrastructure projects.
The CEO of GAFI said that the establishment of CIFC comes in light of the state’s efforts to boost foreign direct investment inflows, by creating favourable conditions and greater opportunities for investments.
Heiba added that the centre will integrate with financial centres located in all countries in the Middle East and Europe.
He explained that all financial institutions and the business community will be contacted, led by Egypt’s Financial Regulatory Authority (FRA), Egyptian Exchange (EGX), investor associations and various securities, to express their opinion and participate in the completion of legislation in the coming period.