Egypt to amend leasing regulations to spur growth rates – market watchdog

Egypt plans to amend the leasing regulations aiming to double the growth rates of this funding mechanism, the market regulator chief said during a leasing event Tuesday.

In a keynote speech at the third conference of Egypt’s Partnership for Development, Sherif Samy – Chairman of the Egyptian Financial Supervisory Authority (EFSA) – referred to the growing demand for the leasing mechanism to fund high-profile projects.

“The authority (EFSA) plans to make amendments to the leasing activity act issued in 1995, with the aim of doubling this sector’s growth rates next year.” Samy said.

Total contracts the leasing firms worldwide have recently entered into have reached US$900 billion, he added.

Africa captures around US$7.8 billion of the total contracts signed by the leasing firms worldwide, said Samy.

The Egyptian official further said the leasing sector has registered in Egypt a significant growth of 227 percent during the first seven months of the current year, with contracts worth 11.3 billion Egyptian pounds. He said there are 25 active firms currently working in the field.

The Partnership for Development Initiative has held Tuesday in Cairo its third conference entitled “Leasing: A Catalyst promoting national projects and SMEs”.

The event aims to tackle the leasing sector’s importance as one of the most effective and capable funding mechanisms that would fulfill the financial needs of all the projects in Egypt, whether for corporate or SMEs.