Khaled Rashed: Innovative solutions ensure companies have easy access to financing, empowering the private sector.
Cairo, May 9, 2023
Misr for Central Clearing, Depository, and Registry (MCDR) has been the Gold Sponsor of this year’s annual Arab Federation of Capital Markets, held in the period from the 9th till 10th of May. As one of the most significant events for stock market and capital market executives in the Middle East and North Africa (MENA), the conference witnessed the participation of several leaders and experts.
Attendees discussed various topics and the main challenges facing the MENA region’s capital markets. The goal was to exchange expertise, best practices, and successful case studies. They also addressed ways to overcome obstacles facing companies interested in dual listing in more than one market. The main aim was to attract foreign investments into the company, benefiting Arab World economies.
During the event, Khaled Rashed, MCDR’s Managing Director, stressed that participating in such events helps create a shared vision among regional capital market leaders and international experts. It was also an opportunity to communicate and develop ideas among capital market leaders; posing an effective platform to discuss the latest global trends, happenings, and their impact on MENA’s capital markets.
Rashed spoke during the fifth session, which focused on the challenges facing private investments that want to invest in public companies. His speech covered special purpose acquisition companies’ (SPACs) expectations, opportunities, and operations in the MENA region.
As part of his speech, Rashed highlighted the importance of innovative financing solutions catering to investor needs, requirements, and expectations. Furthermore, he noted that small and medium enterprises (SMEs) should benefit the most from those new tools.
Rashed added that increasing variety and the number of financing solutions would further empower the private sector, ensuring it continues to grow, capitalizing on arising opportunities.
In 2021, the Egyptian Financial Supervisory Authority (EFSA) announced that SPACs, which raise money through an initial public offering (IPO) to buy another company, can register to operate in the country. EFSA will classify them as “venture capital” firms.
Rashed said that this move reflects the EFSA’s interest in offering new and innovative financing tools for local companies and startups, particularly technology companies.
The Arab Federation of Capital Markets 21 board members has met on the sidelines of the event. They comprised top executives in MENA capital markets, financial brokerage firms, custody, and clearing companies.
In the fiscal year 2022, MCDR relied on a new strategy to achieve growth by developing its service, increasing operational efficiency, creating a more advanced technological environment, and developing new fintech solutions.
As a result, the company’s financial results last year surpassed expectations: Revenues jumped 75% to EGP 1.76 billion, up from EGP 1.008 billion. Net profits were over EGP 1 billion, a year-on-year growth rate of 112%.