ASSIUT: Dubbing Assiut a province with investment potential, Delta Rasmala Securities – the Egyptian arm of a regional investment bank – inaugurated Tuesday its first branch in Upper Egypt, casting a light on a once neglected area.
“We’ve been [looking into entering] Assiut for more than three years, and we reached a consensus . that Assiut can serve our growth aims, said Neveen El-Tahri, founder, co-chairperson, and CEO of Delta Rasmala Holdings.
“Development [can] come from Assiut [in light of] the government’s preferential support. I wouldn’t open a branch in Assiut if it didn’t have potential.
The government recently turned its eye to Upper Egypt to push forward the country’s economic progress and growth rates.
In a bid to attract investors to the area, the government recently revamped infrastructure services and facilities in Upper Egypt, upgrading airports and connecting Upper Egyptian governorates to the gas network.
The government is due September 2009 to complete work on the Upper Egypt-Red Sea Road, with total investment worth LE 640 million.
Last December, Assiut surfaced as the Egyptian city with the least time-consuming business processes in a World Bank report that examined procedures in cities with one-stop shops.
“It takes 33 days in Assiut but 159 days on the outskirts of Alexandria to register property. The process is most time-consuming in Cairo, where entrepreneurs have to wait over six months, the report read. “In Assiut, construction permits require 19 procedures and 109 days; in Cairo, 28 procedures and 249 days; and in Alexandria, 30 procedures and 207 days.
While Delta Rasmala Securities appears to be on a growth curve – looking into further expansion opportunities – Assiut stood out as the next best governorate after already establishing offices in Cairo and Port Said.
“At Delta Rasmala Holdings, there is a surplus in liquidity, and we are [currently] looking into new markets, El-Tahri pointed out.
With operations in the Emirates, Saudi Arabia, Oman and the United Kingdom, Delta Rasmala Holdings specializes in a full range of financial solutions including private equity, asset management, brokerage as well as corporate and Islamic finance. Last October, the Dubai-based Rasmala Investment Bank acquired 51 percent stake in Delta Group of Companies to further strengthen its presence in the region.
Besides its new office in Assiut, Delta Rasmala Securities operates four other offices across Egypt, namely in Mohandiseen, Maadi, Nasr City and Port Said. It is also looking into moving its headquarters to Smart Village.
In Assiut, the firm sees a market with an abundance of human capital and a lack of similar investment banks. It particularly eyes small investors in Assiut who seek new opportunities for growth and investment.
The office Assiut office was inaugurated in presence of Maged Shawky, chairman of the Egyptian bourse, and Ziad Bahaa El-Din, chairman of the board of trustees of the Egyptian General Authority for Investment and Free Zones (GAFI).
“Assiut offers investors several privileges such as gratis land, plenty of human resources, and cheap labor force, Bahaa El-Din said. “[Workers and employees] here are very loyal to their factories, which means that turnover is very low.
Bahaa El-Din also revealed that the Upper Egypt Company for Investment will participate in establishment of a number of projects in Upper Egypt, including a company for tourism promotion, a company for financial leasing and 20 organic fertilizer factories, following the increase in its capital to LE 60 million, up from LE 10 million.
The mandate of the company, in which four government entities participate, includes identification of investment opportunities in Upper Egypt as well as marketing and promoting them to private local and foreign investors. The company will also assist private investors in land registration and license procedures.
“If after all this private investors need an extra push, the company can [pay] 20 percent of total capital.for the maximum period of seven years, he added. “Our main goal is to [entice] investors to [enter] Upper Egypt.
