Good outlook for debt instruments market in Egypt

 

Good outlook for debt instruments market in Egypt

 

Ahmed Kamel

The post-coronavirus outlook of the debt instruments market is good due to growing demand for finance in Egypt.  The Financial Regulatory Authority (FRA) has paved the way for an advanced debt instruments market through a number of sophisticated regulations.

The FRA has well organized the regulatory environment governing the debt instruments market in Egypt over the past few years. It has upgraded that environment by adding new financing instruments.

Financial analysts say the debt instruments market, especially fixed-income tools, have great potential after the end of the Covid-19 crisis, which hit most sectors.

“Fixed-income instruments are a very important for all families in Egypt. These tools help parents secure their children’s expenses,”  Amr, Hassanein, the head of Middle East Rating & Investors Service (MERIS), told a conference on debt instruments in Cairo this week.

“Debt instruments account for 70-75 per cent of investment in financial markets in developed countries, while stocks represent only about 25 per cent,” Hassanein said.

Debt instruments are part of non-banking finance. The enhancement of the non-banking is milestone for comprehensive economic reforms, which are aimed sustainable growth and development in the long run.