Maher Abu State - Managing Director of United Leasing Company The announcement of the EFSA regulations encourages investors and promises a leap in non-bank financing mechanisms


United Leasing participated in the activities of the conference "Non-bank financing instruments  ... Development Partnership" in the fourth session under the title "Innovative financing  ... a new vision to support investment", under the auspices of Dr. Mohammed Omran - Chairman of the Financial Supervisory Authority.

on the future of the financial leasing sector after the issuance of controls and activity cuts .. Opportunities and challenges, the first session was conducted and participated by Maher Abu State - Managing Director of United Leasing. In the presence of a group of specialists are: Tarek Fahmy - Chairman of the Board of the Egyptian Association for Leasing and CEO of Tawfiq Leasing Company and Tarek Selim - CEO of Al-Ahli Leasing Company and Hisham Abdel Fattah - Executive Vice President of Global Lease and Suha Suleiman - CEO of OR Leasing. The session was moderated by Dr. Samir Mahdi, Vice Chairman of the House of Expertise.

Maher Abu-State spoke about the importance of reducing interest and high return to encourage national and foreign investments to enter the market, which would revive the national economy. And then achieve sustainable development in accordance with the vision of the Egyptian state 2030.

He also added to the great interest of the state and the concerned bodies to increase the base of beneficiaries of financial leasing mechanisms as non-banking financing mechanisms in many areas including: real estate sector activity, transport, machinery, equipment and production lines. The CBE also allowed financial leasing companies to benefit from the outstanding returns of the SMEs and micro enterprises sector initiative.

Abu State said that the legislation and regulations issued by the Egyptian Financial Supervisory Authority during the last quarter of 2018, has done a good incentive for the bad investors, local or foreign, especially owners of small, medium-sized and micro companies to increase the demand for financial leasing.

Maher Abu-State singled out the organizational rules related to governance on the basis of separation of ownership and management and then regulates the management process either through a board of directors or through the executive committees that are applicable from the board of directors.


Abu State praised the decision of the deadline to adjust the situation, which gave companies two years to adjust their conditions with the new laws until 2020. He demanded that the time limit for startups to be five years from the beginning of the company's start-up process to adhere to all the criteria of financial solvency, especially the focus, both for the sector or for the indebtedness of the top ten customers.

He also praised that the Financial Leasing and Factoring Law allows companies to add the factoring activity after obtaining the approval of the Authority. Also it has a positive impact on the profitability of the company, in addition to extending the strong relationship between the company and its customers through short-term financing, which requires continuous communication between the company and its customers.

He pointed out that United Leasing Company is working to establish a sustainable relationship with customers in order to ensure the sustainability of growth and achieve the expected increase of productivity of these companies in the Egyptian market.

Abu State reviewed the lack of national awareness of financial leasing to several reasons, the most important of which: the lack of adequate awareness of its concept and advantages of a large number of investors, especially in the field of SME and micro enterprises sector. As well as the spread of a culture of stereotyping in the granting of bank financing.

On the Bank's experience in innovating and introducing non-banking financing instruments to open new financing horizons for investors in accordance with Islamic Law through the introduction of a financial leasing mechanism.

Leasing contributes to economic, social and cultural growth

Abu-State said that the Egyptian market is promising the size of investment opportunities available to local or foreign producers. This has prompted the United Bank to introduce innovative non-bank financing mechanisms to meet the needs of investors, especially finance leasing. Which is one of the non-bank financing mechanisms specialized in the development of society, whether at the economic level or social level or cultural level.

At the economic level: through increasing national income and maximizing the performance of the sector of SME and micro enterprises sector. Increasing the volume of investments, which drives economic activity towards better productive and operational rates to achieve the government's economic reform program according to the Egyptian state vision 2030

On the social level: through improving the standard of living of the individual and improving the level of services provided to him and achieving sustainability in the rates of development, which contributes to the creation of jobs and reduce unemployment and crime rates and empower women and youth.


At the cultural level: through raising the financial and banking culture through the dissemination of awareness of digital financial services available through mobile and the Internet. This contributes to expanding the base of financial inclusion and reducing the volume of cash circulation, saving the state wasted billions and reducing the spread of corruption.

Advantages of financial leasing activity

As for the advantages of financial leasing, Maher Abu-Sttate pointed out that the financial leasing provides the opportunity for the emergence of financing mechanisms for capital assets either for large companies or SME and micro enterprises sector, which is due to the positive impact of the client on his cash flows and not to use his own resources to buy these capital assets. The payment should be made in installments during the granted finance period


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