Farag Abdel Hamid: The United Bank seeks maximizing green economy mechanisms and building a sustainable citizen

12/11/2024

In the 3rd session of People and Banks “EL Nas we EL Bnok” conference

Farag Abdel Hamid: The United Bank seeks maximizing green economy mechanisms and building a sustainable citizen

Farag Abdel Hamid: The United Bank Vice- President

• UB works on achieving the hard equation among the four green economy factors.

• UB infuses the spirit of national industry and curing the crisis of 20 faltering factories.

• A new page for operation and production after ending up indebtness that approached half billion L.E.

• Integrating the square of development to draw a green investment map: The state, The Central Bank of Egypt, banks, and international finance institutions.

• UB works in line with the national agenda devotee to maximize green finance mechanisms and attract investors.

• 4 developmental reflections for green economy mechanisms.

 

Cairo: 12th of November 2024

The United Bank participated earlier today in People and Banks “el Nas we EL Bnok” conference – eighteenth edition, under the slogan of “Towards a sustainable economic growth”. 

 

Rania El Mashat- Minister of Planning and Economic Development, inaugurated the conference. In the presence of : Dr. Alaa Farouk- Minister of Agriculture, Dalia El Baz- President of the Egyptian Post, Dr. Mostafa Elfekky- CEO of the Arab  Media Center, Tarek Elkholy- CBE deputy governor, Mohamed Eletreby- president of Egyptian band federation and CEO of the National Bank of Egypt, Hesham Okasha- CEO of Misr Bank and president of the conference, Yehia Abo Elfotoh- vice president of NBE and Secretary – General of the conference, Sabry Ghonem- Managing Director of AMC, Wafaa ElGhazaly- executive manager of AMC, all along with a constellation of bankers, businessmen, economists, journalists and media persons.

The conference discussed a number of important issues such as: a roadmap towards Egypt economic prosperity, the future of Fintech and AI, the role of banks in funding green projects and sustainable industries, combating banking fraud and the role played by banks in awareness.

 

That’s besides announcing the winners of the research competition-2nd edition by AMC amid the conference events, with the cooperation of Egyptian Banking Institute, about using AI in enhancing cyber security in banks and it’s role in improving banking services.

 

In the 3rd session, under the slogan of “The role of banks in funding green projects and sustainable industries”, Mohamed Beder- CEO of Qatar National Bank, moderated the session. It discussed how the banks contribute to finance projects that aim to protect the environment and enhance sustainability. Moreover, the different tools of finance such as green bonds, how to encourage innovation in green finance. As well as, the challenges facing banks and available opportunities to maximize finance directed to sustainable green economy. 

 

Farag Abdel Hamid participated in the session along with Ahmed Galal- president of Export Development Bank of Egypt, Ghada Tawfik- CBE governor’s advisor for Corporate Social Responsibility, Soha Elturky- NBE vice president, Suzan Hamdy- Head of Sustainability and sustainable finance in Misr Bank and Mohamed Yousef- Head of sustainable finance in ABC Bank. 

 

Farag Abdel Hamid- UB vice president, began his speech by UB’s sought to maximize green economy mechanisms and building a sustainable citizen. Through a national strategy, banking and social integrated solutions focused on ending up the crisis of 20 faltering factories and expanding in funding SMEs in many fields: Agriculture, industry, production and services. As well as, providing support and social assistance for digital and environmental transformation on economic and social levels.

 

First: on the economic level

UB achieved the hard equation among four factors: 

1- Providing banking services that meet the needs of the market and serve the national economy and investors. Either in large corporates, medium, small, and micro corporates, start- ups, entrepreneurships as per CBE initiatives.

2- Providing a set of innovative digital banking services that serve all economic sectors and expand the base of financial inclusion, and encourage E-Trade and accomplish digital transformation mechanisms.

3- Providing innovative solutions that eliminate economic, social, environmental challenges and strongly pushes the wheel of production and operation forward to achieve integrated development as per 2030 vision.

4- Achieving the wellbeing of the citizen and improve his/her quality of life, and the presented services, either health or education. As well as, creating new job opportunities and reducing environmental damage 

Out of this strategic prospective, UB helped 20 faltering factories to get back on the track of operation and production and terminate the indebtedness that approached half billion L.E. That was in the framework of the Egyptian government and CBE initiative to eliminate the crisis of faltering factories. Which will enhance the competitive capabilities of the national economy, maximize exports, infrastructure and create job opportunities. That will positively affect the lifestyle of the citizen and the quality of services presented. Furthermore, achieving sustainable development, enhance the trust of investors, and improve the atmosphere of investment with green economy mechanisms and tools.

Abdel Hamid pointed out that UB is a national partner in many green finances for economic entities. Moreover, UB spare no effort to change the societal culture and individual environmental practices towards achieving balance between marine and land environments and reducing the produced results of misusing environmental resources to keep the next generations right in our environment. 

In the large corporate finance. UB paid huge attention and devotion to agricultural, service and logistics projects that is concerned with food security. Such as funding the Canal company for Sugar, and Rakhaa company for investment and development. As well as, financing the infrastructure of Abu Keir port. Which will contribute to reduce the balance of payment through reducing imports and increasing exports.

In middle and small enterprises. UB participated as a founder in the fund of “Avans Manara” which is called the fund of funds. Whereas it contributed to many investment funds to develop SMEs sector and maximize the economic return to achieve 2030 vision. Coping with CBE instructions and the Egyptian state.

UB funded fleets of public transportation and convert them into green transportation around the Republic. In addition to developing value chains that provide projects with clean energy and speed up it’s use. That will change the consumption culture of the citizen. And direct it to clean and renewable sources of energy.

In the entrepreneurship and start- ups field. UB provided a set of banking and non- banking services through Nile Pioneers developing businesses center, under the patronage of CBE. Those centers are there in Cairo, Dakhalia, and El Menia. There, they train the clients on the basics and fundamentals of finance, entrepreneurs can find there sets of consultations, tech support to make their projects sustainable. Such as furniture industry, diaries, and plastics.

Moreover, a set of digital services that works 24/7. Coming on top: Corporate Online banking, and cash management. Which qualifies the corporates either large or medium or small to get the utmost benefit out of all it’s balances and accounts via investing those balances.

In the field of specialized finance solutions for micro finance sector, UB funded many projects aiming to develop value chains and eliminate many social and economic problems, such as: unemployment, crime and corruption. In addition to it’s effective role of blending formal economy with the parallel one, and improving the citizen’s lifestyle and changing the consumption culture into clean energy.

In the field of green finance directed to individuals.. UB participated in the initiative of converting cars to operate with natural gas Go Green, as a substitute to oil and petrol, that thing helps achieving big financial and economic abundance in the general budget of the state. Moreover, this contributes to directing this abundance to support sectors like health, education and scientific research. In order to promote services presented to the citizens and improving their lives. As well as, eliminating pollution and harmful environmental emissions that badly affects the health. 

In addition to, providing mortgage to medium and limited- income citizens. Whereas UB is ranked the seventh among eleven banks to provide the service, with a co- finance of 50 billion L.E. in favor of Social Housing Fund.

Second: on a social level

UB conducted 26 initiatives and projects in line with green practices on the level of health, social development, green economy and education.  These initiatives are; the issuance of carbon emissions report. Plus the new Capital headquarter, banking solutions to expand the financial inclusion base, contribution to converting Sharm El Sheikh into a green city, empowering residents of Saint Catherine to help 350 families find sustainable income, rebuilding the village of Nag Elgosor in Luxor and empowering 700 families in the village, participation in Light House fund, sports support fund, the annual Holy Quran competition, launching many initiatives for Lacky forum aiming to achieve environmental balance, the initiative of eliminating Virus C, corona vaccines, 100 million health initiative, Our Children in Our Eyes initiative to examine blindness causes and anemia in schools, women health initiative and eliminating waiting lists initiative. 

Integrating the development square to draw a green investment plan

Farag Abdel Hamid stated that drawing a green investment plan to maximize the environmental, developmental, social and economic performances with sustainable finance tools require the collaboration from the four sides: the state with it’s different systems, banks led by CBE, funding institutions either local or international, civil society institutions in order to innovate sets of green finances with competitive privileges that meet the investors needs.

4 developmental reflections to green economy applications:

• Securing the targeted economic growth for Egypt against climate changes and environmental pollution with it’s different kinds.

• Achieving rates of economic development faster and with eco- friendly means.

• Depending directly on green investments which serve environmental resources without being depleted.

• Keeping the rights of next generations. 

 

End