Egyptian Exchange Posted
Executive Chairman of The Egyptian Exchange (EGX), Dr. Mohamed Farid Saleh, participated in the conference “The Banking Industry and The Future of Financial Services” that took place in Sharm ElSheikh, Egypt from 13-14 November 2020. The conference is organized by the Union of Arab Banks and the Federation of Egyptian Banks, and attended by the leaders of Arab and Egyptian banking and non-banking sectors.
In his opening speech, Dr. Farid stressed the importance of cooperation in uniting the efforts of leaders of the banking and non-banking sectors to accelerate the integration of financial technology and the role of increasing financial inclusion and digital transformation and thus increasing savings and investing rates.
He emphasized the importance of coordination in light of the recent changes imposed by the Corona pandemic, which urges us to discuss how to deepen the cooperation between the banking and non-banking sectors, in order to support the objectives of the economic and social development plans of our Arab nation, especially in matters related to financial technology, integrating in the future plans for the development of the financial industry. He also pointed out that the Arab economies suffer from the low savings rates necessary to finance investments and achieve strong economic growth, where financing gaps are putting pressure on budgets.
According to World Bank, Egypt’s savings rate was 9.4% in 2019, while the investment rate reached 19.4%, with an estimated 10% gap. The Arab world recorded a funding gap of 9.2%; 6.9% in Algeria 6.9%, and 20.3% in Lebanon, recording the highest among Arab countries. In 2018, Jordan also recorded a gap of 19.1%, all because of the weakness in savings rates compared to the required investment rates.
During the conference, Dr. Mohammed Farid, Chairman of the Federation of Arab Exchanges and Mr. Mohammed Al-Etribi, Chairman of the Federation of Egyptian Banks, witnessed the signing of Memorandum of Understanding between the Arab Banking Union and The Arab Federation of Exchanges for the development in matters related to technological structure, and digital financial transformation, through the launch of the “E-KYC” initiative, and designing training programs to develop the capabilities of Arab Capital Markets. The MoU was signed by Mr. Rami ElDokani- Secretary General of the Arab Federation of Exchanges and Mr. Wessam Fatouh — Secretary General of the Union of Arab Banks.