The Ministry of Investment in Egypt has prepared a set of new laws and amendments to develop and modernize nonbanking financial services with a focus on serving small and medium-sized enterprises (SMEs). The ministry has released eight draft laws that deal with “managing business procedures for public and private companies, licensing, mortgage finance, private insurance funds and voluntary pensions companies, healthcare firms, financial leasing and movable property registry.” The new laws will also establish rules and conditions for licensing microfinance companies, as well as companies working in financial leasing. According to the ministry, the new laws and amendments aim to integrate the informal economy into the formal economy. This is one of the main areas of reform called for in the sixth annual Egyptian competitiveness report published in May by the Egyptian National Competitiveness Council (ENCC).

By Conner Brannen, Research Assistant

Sources and Additional Resources:

Zawya: “Egypt readies bills to reform investment climate,” July 8, 2010: http://www.zawya.com/Story.cfm/sidZAWYA20100708054127/Egypt%20readies%20bills%20to%20reform%20investment%20climate

Egyptian National Competitiveness Council (ENCC): “Beyond the Financial Crisis: Competitiveness and Sustainable Development,” 2009: http://www.encc.org.eg/Reports/English/FifthENCR%20English%2008.pdf

Egyptian National Competitiveness Council (ENCC): http://www.encc.org.eg/

MICROFINANCE PAPER WRAP-UP: Women’s Empowerment through Islamic Microfinance in Egypt, by Valentina Costa, Hala Makhlouf and Perrine Mazaud: http://www.microcapital.org/microfinance-paper-wrap-up-women’s-empowerment-through-islamic-microfinance-in-egypt-by-valentina-costa-hala-makhlouf-and-perrine-mazaud/

MICROCAPITAL BRIEF: World Bank (WB) to Loan $300m to Egypt to Promote Access to Finance for Micro- and Small Entrepreneurs, March 23, 2010: http://www.microcapital.org/microcapital-brief-world-bank-wb-to-loan-300m-to-egypt-to-promote-access-to-finance-for-micro-and-small-entrepreneurs/

MICROCAPITAL BRIEF: Egyptian Law to Expand Microfinance Market by Granting Microfinance Institutions (MFIs) Commercial Status, February 16, 2010: http://www.microcapital.org/microcapital-brief-egyptian-law-to-expand-microfinance-market-by-granting-microfinance-institutions-mfis-commercial-status/

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