Egypt qualified to be regional financial hub in Middle EAST

Accompanied by 15 businessmen and bankers, London Mayor Lord David Howard paid this week a visit to the Egyptian Stock Exchange (ESE), inspecting the sophisticated techniques adopted by the Egyptian bourse.

"My visit to Egypt was very significant to get acquainted with the enormous developments witnessed by the Egyptian economy and to tackle with senior officials the positive results achieved by the structural adjustment programme launched by Egypt," said Lord Howard.

The visit, at the present time, was a clear message demonstrating the maintenance of global free trade despite the ongoing international tension ,he added.

Terrorism will never deter the progress of globalization according to Mayor Howard.

Howard, who plays a key role in the financial community in London regarded as a major international financial centre, voiced his high appreciation for the great achievements fulfilled by the stock exchange over the past five years, especially in the latest advanced circulation systems.

Referring to the cooperation agreement struck by London Bourse and the ESE, Lord Howard said that the accord focuses on the fields of training and information exchange.

The Arab stock exchanges have been actually developed, a move that allows for enhancing further regional cooperation, he noted, pointing out that Cairo is qualified to be a regional financial hub.

"Lord Howard was informed of the technological progress which has taken place in the ESE as well as the future plans on promoting cooperation with other regional bourses," ESE chairman Sameh Torgoman, who accompanied the London mayor on his visit to the bourse said.

The London Mayor, whose three-day visit to Egypt was the first of its kind, reiterated that the ESE is the gateway for the British investments in the Arab region within the context of revitalizing linkage accords between Arab capital markets, Torgoman further said.

On the impact of the ongoing international developments on the ESE, Torgoman said that the Egyptian bourse mainly depends on the Egyptian investors as the foreign investments do not exceed more than 25 per cent in most cases, a matter which makes the foreign investments not as effective on the activity of the Egyptian Bourse.

Following a meeting with Prime Minister Dr. Atef Ebeid, the London Mayor hailed the standing economic and trade relations between Egypt and Britain, pointing out that the coming period will witness a great leap in the fields of joint investments and trade exchange.

An official source said that at the British Embassy in Cairo announced that the total volume of British investments in Egypt has increased to $ 5 billion in various fields including the petroleum sector.

According to latest statistics released by the commercial representation office, volume of Egyptian exports to Britain increased by 70 per cent in the year 2001.

The bilateral trade balance has achieved a surplus of 14.6 million pound sterling for the first time since the first four months of this year, compared to a deficit in favor of Britain worth 33.9 million pound sterling in year 2000.

Ebeid received recently the chairman of Britain's second largest food retailer, Sainesbury's, which announced its intent to re-enter the Egyptian market and expand its activities.

Sainsbury's is ready to train fresh Egyptian graduates on the latest trade management and marketing techniques, the Company Chairman said following the meeting with Ebeid in the presence of Minister of Supply, Hassan khedr.

During the company's first entrance into the Egyptian market, it offered. 60 million in local products. It would also offer overLE . 200 million and hold a fair for these products in January, he said.

Meanwhile, Executive Manager of the Egyptian-British businessmen society Ismail Roshdy said that businessmen of both countries expressed readiness to establish joint investments in the fields of banking services, major projects under the BOT system and petroleum.

On the same plane, a British executive director of a cement company said that the corporation had started its investments in Egypt early last month by purchasing the Alexandria Portland cement company,where the number of workers were increased to 1990.

He expected that demand on cement will increase over the coming years, a matter which provides more investment chances in this domain.

"The company plans to explore exporting chances in future, especially that the Egyptian cement is capable of competition in the world markets," the British investor said.