Egypt considers financial leasing to bolster industrial sector liquidity
Updated 12/9/2024 1:12:00 PM
Arab Finance: Egypt is exploring measures to enhance liquidity in its industrial sector through financial leasing as part of broader efforts to reduce reliance on imports and boost exports, Vice Chairman of the Financial Regulatory Authority (FRA) Islam Azzam told Asharq Business.
The initiative aligns with the government’s strategy to expand industrial investment and address foreign exchange challenges.
The FRA is evaluating a proposal to extend financial leasing loans to cover land purchases offered by the Industrial Development Authority (IDA) for the first time.
Azzam said that the FRA plans to engage with the IDA to formalize the initiative.
This move comes as Egypt accelerates the sale of industrial land to promote sectoral growth.
By introducing financial leasing as a funding mechanism for industrial land acquisition, the government aims to open a new financing channel for businesses.
The initiative is expected to complement ongoing efforts to attract investment and spur industrial expansion.
Head of the Egyptian Commercial Service (ECS) Yahya Al Wathiq Billah said before that the government aims to increase industrial investments by approximately 10% in 2024, targeting $3.6 billion compared to $3.3 billion in 2023.
Financial leasing could play a critical role in achieving this goal by easing access to essential capital assets for industrial projects.
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