After the announcement of the Minister of Immigration… Experts present the success scenarios of the company “Egyptians Abroad”

The government intends to establish an Egyptian joint-stock company to invest the money of Egyptians abroad in large national projects or to invest their own money in them and to find advantages that will encourage them to transfer their savings to Egypt.

According to the Central Bank of Egypt, Egyptians’ remittances from abroad hit $31.9 billion in the 2021-2022 fiscal year, up from $31.4 billion the previous year.

A few days ago, Ambassador Suha Gendy, Minister of State for Immigration and Affairs of Egyptians Abroad, met with Dr. Mohamed Farid Saleh, President of the Financial Regulatory Authority, in the presence of a number of executive leaders from the Ministry and the Administration, to discuss ways of cooperation regarding investment opportunities for Egyptians in their homeland, but what about the opinion of financial and economic experts and their proposals regarding that company, especially when it is offered on the Egyptian stock exchange, as announced by the Minister of Immigration.

The week, in turn, met with economists in separate conversations, they unanimously agreed that the company’s activities should be expanded to various direct and indirect investment tools, provided that they are not limited to money management or a fund only for this purpose, emphasizing the need to select time of the company’s offer, noting that it is an excellent initiative for investing citizens’ money abroad and maximizing income at home:

Mona Mostafa: The government must first implement 3 factors before offering it to the market

Mona Mostafa, director of trading at Al-Arabiya Online, said that the investment company to be established for Egyptians abroad provides investment opportunities in several different areas, but can this investment be available in the money market?

Mona Mostafa answered this question and identified 3 factors for the government to complete this step, the first of which is: that the stock market is the first gate to enter the country for indirect investment, which implies the need for the government to attach great importance to the Egyptian stock market and consider it as a rock the foundation of the national economy, instead of it being a mirror of the economy of every country.

It is a mistake to enter a period of overbought in the Egyptian stock market

She stated that this issue is reflected, of course, in a strong push in terms of maximizing the income of Egyptians abroad, because their investments enjoy good returns, and then the market benefits from them at the same time by stimulating liquidity levels.

Second: The timing of investing in the money market is one of the most important factors for the success of this investment. During the overbought phase, new state or semi-state investments may not be entered into. Timing must be carefully considered to achieve feasibility Choosing the moment to start investing in the stock market is very important, in order to avoid randomness that confuses the market due to bad timing.

The market is at its peak and cannot afford more bubbles

And the technical analyst adds that the entry of investments and the market is at its peak, after all, they are called bubbles that collapse quickly, which means price bubbles, that is (inflating the value of shares) far from fair value, which inevitably leads to large losses in the market value of shares , which subsequently loses about two-thirds of the dividends.

In this context, Mona Mostafa believes that the current phase does not require the entry of Egyptians abroad, perhaps after a period in the medium term that can achieve added value, because the market is currently going vertical, which requires investments with regular and stable returns.

First of all… the launch of large promotional and educational campaigns

He continues that the third factor is the investment promotion process, because attracting good capital requires large promotional and educational campaigns, in order to reflect confidence in the existence of an attractive and attractive business precedent for investment.

Responding to Al-Osboa’s question about the expectations regarding the features of the Egyptians Abroad Company, Mona Mostafa said that she expects it to be an investment fund that invests in various debt financial instruments or in the form of a joint-stock company that invests in real estate, education and health, in addition to investments in the stock market.

Muhammad Abu Basha: The tendency for the company to limit itself to asset management has no effect on the performance of the Stock Exchange

Muhammad Abu Basha, chief economic analyst and deputy head of the research sector at the Hermes Financial Group, says: “We do not know the characteristics of the operation of this company. Asset management.

He adds: The company that will be established by the state is like an asset management company, which has no influence on the operations of the Stock Exchange, which is why the competent authorities must determine the company’s guidelines.

The market’s need for new goods, like the government’s proposals, is an absolute necessity

For his part, Mohamed Abdel Nabi, an economic analyst, believes that the government’s move to establish a company for Egyptians abroad is a good one, and its goal is to invest Egyptians’ money inside the country, while strengthening the foreign currency inside the country. it is also an opportunity for overseas investors to make good returns in return by investing their money back home.

Abdel Nabi told Al-Ousboa that we have taken steps in the right direction, as the money market has achieved many gains in the recent period thanks to the Climate Conference, as well as the decision to liberalize the exchange rate, which has brought foreign investors back to the Egyptian stock market, stressing the need for the market to new goods like the offers announced by the government, underlining the need to accelerate this step, given its important role in stabilizing the market and increasing liquidity rates, while moving the low share price.

We recall the success of Telecom Egypt, which started at 11 pounds and reached 30 pounds the same day

And he continued

Fears that the company’s features are like investment funds

Despite this, Mohamed Abdel Nabi did not hide his concern about the investment company that deals with Egyptians abroad, because it can be in the form of a fund that manages the money of this important segment, and receives it in various investment tools, which is of no use to the money market that new and practical goods are needed that improve its performance and increase its value. Such as accelerating the supply of Safi, Wataniya, Banque du Caire and others, pointing out that it is these commodities that attract foreign, financial and Arab investment, and even Egyptians abroad.

He pointed out that the entry of Qatar, and before that the United Arab Emirates and Saudi Arabia, into the Egyptian stock exchange is an important matter, but the market needs more state support in order to take advantage of all the difficulties.

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