By Mona Alam Eldin
There is no doubt that, the economic reform programme in Egypt targets an economic growth and stability. It happens through turning the public expenditure from the service sectors, to the productive sectors, and from consumption to investment. That requires improving the growth rate in trade liberalization polices, the reduction of the government’s role in the economic activities and improvements in the capital market.
As part of the economic reform, is the government’s plan to confine the untapped assets. With the main goal to provide returns, increase company’s capital and accordingly increase productivity, efficiency and profitability of such companies. Added to that, the state’s benefit as a shareholder by increasing tax returns from firms valued at EGP 170 billions.
Banks can play an active role in the field of assets and real estate by utilising unused public assets of agricultural lands and real estate to encourage investments in infrastructure. Thus, provides job opportunities. Also, establishing real estate companies related to banks by offering real estate mutual fund, to be managed by the banks through submitting loans and credit facilities serving lease and sales, the matter which increases the volume of investment and develop the Egyptian stock market.
Last year, three major companies were floated on the exchange (Cake & Biscuit maker “EDITA” – Real Estate firm Eamaar – Misr and Orascom Construction), and there are around 270 companies to be listed on the Bourse. It is expected that (15) companies are waiting to sell its shares on the stock markets, these companies include The Middle East Oil Refinery (MIDOR), The Egyptian Ethylene and Derivatives Company (ETHYDCO), Alexandria Mineral Oils Co. Misr Oil Processing and Fertilizers Company (MOPEC), and Sidi Kerir Petrochemicals Company.
Recently many rumors are frequented around the State Courier “Egypt Air” and about the state’s trend to offer 20% of its shares in market exchange, and the remaining 80% of Egyptian Holding Company would stay as is to ensure loans for new aircrafts. Mr. Safwat Musalam Ex. Chairman of the Holding Company stated that Egypt Air is a strategic entity since 1932,having 33.000 employees and has several subsidiaries including the national Carrier and associated aviation service companies. Egypt Air is planning to buy 12 new passengers planes to increase its fleet.
Mr. Musalam stressed that there are not any negotiations with any other country, or having any offers from any Arab or Foreign investors.
So, we can conclude that, state-owned assets need a comprehensive plan with a clear listing, assessment, technical and financial evaluation with a reforming plan to achieve optimal utilization of state-owned assets to reach the best results.
