Said Zater, CEO of Contact Financial Holding and Chairpersom of the Egyptian Federation of Consumer Finance, participated in the 8th Capital Markets Annual Summit, which was held under the style of “Structural Reforms– Sustaining Development”. The top, which was sponsored by the Ministry of Finance, the Ministry of Planning and Economic Development, the Financial Regulatory Authority, and other entities, concentrated on the structural reforms that the Egyptian federal government is carrying out in different financial sectors to boost financial investment and sustainability.
In the 2nd panel, entitled “Corporations and the Challenges of Managing Cost of Financing,” Said Zater stated: “Consumer financing is a crucial financial sector in Egypt, as it impacts everybody, improves usage, and supports financial development. It is the future we will all be living. The customer financing law, which was provided in 2020, has actually produced brand-new chances for business to go into and play a considerable function, specifically in the middle of crises such as COVID-19 and currency exchange rate changes.” He likewise stated: “Consumer financing is various from other kinds of funding, such as leasing, due to the fact that it is not possible to use a floating rate of interest to the consumer.”
Zater went over customer habits too, discussing that clients might utilize customer financing to purchase items that they might not require urgently, fearing future cost walkings, or for conserving functions due to inflation, which might cause troubles in paying the installations.
Zater pointed out that Contact was developed in 2001 as the very first financing business in Egypt, and started releasing securitization bonds in 2005 as the very first securitization bond provider in Egypt. Later on, it provided sukuk, and turned into one of the biggest companies of bonds and sukuk in Egypt. He stated that the business requires considerable liquidity to money its operations, so it utilizes all funding tools, as relying just on banks is not practical. It looks for to satisfy its funding requirements and accomplish the needed liquidity.
Concerning the Ras El Hekma offer, Zater anticipated that currency exchange rate stability would bring in financiers, and worried the requirement to support the currency exchange rate and usage resources to keep a healthy market that enables business to see the Egyptian economy with optimism.