EGX and ALEXBANK Sign MoU to Launch New Initiative to Support SMEs in Egypt
Cairo – March 19, 2017 – Building on the crucial role of SMEs in supporting and enhancing the Egyptian economy, EGX and ALEXBANK signed a MoU to support and empower Egyptian SMEs, by facilitating access to capital for business expansion of promising and growing companies.
The initiative aims to further support the vital sector of SMEs providing additional financing sources as well as attracting new shareholders through NILEX, the first pioneer market dedicated to SMEs in the Middle East and North Africa (MENA). Companies are likely to experience many positive effects after entering the stock exchange, being more visible and regulated, thus increasing their transparency and attractiveness for investors and lenders. This will allow a better access to the financial resources needed to sustain their growth bringing more efficiency to the Egyptian economy as well.
Dr. Mohamed Omran, Chairman of EGX, stated, “Supporting SMEs is among the top priorities on EGX ‘s future agenda. We strive to support this promising sector and help it grow. The increased number of distinguished SMEs will help the economy by creating more job opportunities and increasing its competitiveness, which is critical in the coming period particularly in light of the current economic challenges.”
He added, “NILEX is one of the important tools available to support SMEs. We aim to expand its coverage to include areas outside of Cairo and Alexandria, which will help widen the scope of development across various governorates, particularly Upper Egypt. Cooperation with the banking sector is vital to EGX in 2017. The EGX will collaborate with banks instead of competing in providing the needed finance to companies which will benefit all parties in the market.”
The value traded on NILEX jumped remarkably by 45% in 2016, reaching EGP 900 million, additionally, its turnover liquidity ratio increased by 63% in 2016.
Dante Campioni, Managing Director & CEO of ALEXBANK, said, “SMEs sector plays a significant role in the economic development of Egypt since it largely contributes to the GDP formation and total employment. ALEXBANK is happy to start this initiative, to aiming to help these companies overcoming obstacles may limit their growth and their expansion into new markets".
Campioni added, “EGX and ALEXBANK share the same vision and goals to provide SMEs access to capital resources reaching a better and more balanced financial profile able to facilitate the expansion of their business which will be beneficial for all parties and will contribute to the enhancement of the Egyptian economy as a whole.”
ALEXBANK's participation in this initiative comes as part of its effort to support SMEs by launching a wide range of innovative products and services. The latest of which is “ALEXBANK Business Passport”, launched in February 2017, a comprehensive package of non- financial Value Added Services (VAS) designed to support and empower SMEs.
ALEXBANK was named the Middle East Best Bank for SMEs in June 2016 by Euromoney.