Hossam Heiba, CEO of Egypt’s Investment Authority, Discusses Economic Reforms and the Expanding Private Sector

Global Finance: Is there a strong interest from the Egyptian private sector to be a part of the Saudi transformation?

Hossam Heiba: Absolutely. According to Saudi officials, Egyptian investors are currently the leading investors in Saudi Arabia, with investments totaling around $20 billion USD. We are actively promoting the expansion of Egyptian companies both regionally and globally, while also encouraging foreign direct investments (FDIs) within Egypt.

GF: How is the business environment changing in Egypt? And what would you say to investors who might have been a little scared before?

Heiba: In 2016, the Egyptian government initiated a significant economic reform program, which involved not just altering economic policies but fundamentally shifting our investment philosophy. Historically, Egypt focused on stabilizing the foreign currency and safeguarding the Egyptian pound. However, since March 2024, our focus has shifted to managing inflation, with currency prices now determined by market dynamics. This approach has been successful so far. Foreign currency is accessible in the banking sector, there is a standardized pricing for the Egyptian pound, and both investment and trade activities are proceeding smoothly.

Our second focus area was fiscal policy, particularly the tax system and customs framework. We aim to establish a transparent, straightforward tax system while facilitating the import and export of goods and services. We’re streamlining, digitizing, and reducing unnecessary paperwork. At GAFI, we’re digitizing all processes and aiming to quicken approval processes for permits and licenses. Approvals for foreigners should not take more than 10 working days, company incorporation should be completed in 48 hours, and licenses and land allocations should not exceed 20 working days.

GF: There is a lot of talk of privatization in Egypt and IPOs. What can we expect?

Heiba: Our primary goal is to involve the private sector in sectors like logistics, tourism, petrochemicals, and telecommunications. For instance, we’ve increased the public shares of Egypt Telecom by 10%. We’ve also partnered with the private sector to renovate six of our historic hotels, and various projects are being developed with different companies. Expect more public-private partnerships (PPPs) in areas like water treatment, desalination, waste management, and renewable energy. Once a company is ready for partial or full sale to investors, we proceed without hesitation. Currently, we’re preparing several companies, including banks, for sale to strategic partners or for IPOs. Our aim is to develop our stock exchange and encourage private sector participation in the Egyptian banking sector.

GF: What kind of partnerships are you looking to have in the banking sector?

Heiba: We’re selling a minority share in Alex Bank to an Italian bank, and we’re preparing United Bank for an IPO. We also have several offers for strategic partnerships with Banque du Caire.

GF: Is there a specific type of expertise that you’re trying to bring in with foreign investment?

Heiba: We definitely welcome foreign expertise to upgrade and enhance our banking system. However, it works both ways—international banks are eager to enter the Egyptian market to leverage our existing expertise in the Middle East, Gulf, and Africa.