رئيس اتحاد التمويل الاستهلاكي في مصر لـ CNBC عربية: نستهدف نمواً يصل إلى 50% في محفظة الشركة العام الجاري

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Watch رئيس اتحاد التمويل الاستهلاكي في مصر لـ CNBC عربية: نستهدف نمواً يصل إلى 50% في محفظة الشركة العام الجاري - CNBCArabia on Dailymotion

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05:41 Of course

05:42 How has the influence of consumer finance companies directly affected the investment rate rise of 600 points?

05:50 Of course it has had a very, very strong impact

05:54 and all consumer finance companies may have a problem with the financing solutions for them

06:02 because, as the client takes the financing, I as a company take the financing

06:10 All consumer finance companies, of course, seek financing tools in general

06:15 and see the best alternatives for it

06:19 If it is in bonds, in bonds, if it is borrowing from the bank, taking financing from the bank

06:27 All this affects the decision at the end

06:31 But in general, the increase in interest rate has greatly affected the market

06:38 Yes, there is an increase that happened in the first two months

06:41 But with the first month

06:42 The first quarter of the year for the consumer finance sector has appeared

06:45 Yes, of course, it appeared in the last two days and may have increased a little from the previous year

06:52 However, we do not expect this year to be the same growth as it was last year

06:59 So the growth is affected because of the interest rate

07:01 Of course, of course

07:02 Knowing that the number of customers increases, which benefits from this sector

07:07 Do you expect that the amount of funding will slow down in 2024?

07:14 I mean, we see a funding amount of less than 47 billion

07:17 No, of course, it will be a little more

07:21 It may increase by a percentage less than last year

07:25 But it may reach 21% increase in the total amount of funding

07:31 When do you expect the interest rate to start to decline in Egypt?

07:35 I started to see indicators

07:38 Of course, the market is stabilizing

07:40 At the same time, the demand for the dollar is very, very low

07:43 At the same time, the rate of inflation is decreasing

07:48 I see a promising market

07:51 Of course, with the new presidential term

07:54 And if there will be a new government

07:58 All this will give more opportunities

08:01 And the client is waiting for the existing political decisions

08:05 On the basis that it affects the market in another way

08:08 And at the same time, I see that after two months

08:11 Or within two months

08:13 The interest rates will be in decline, not in the market

08:17 So it will be a low rate

08:18 Yes, of course

08:19 How many consumer financing companies are there in the Egyptian market?

08:21 I swear, there were 41 companies

08:24 Today, there are actually 35 companies in the Egyptian market

08:30 And these are the active ones?

08:31 These are the active ones

08:33 The rest are the ones who have stopped their activities

08:36 Or they can't continue their financial studies

08:38 Or they have certain circumstances

08:40 All these are the other six companies

08:43 Do you think that the number of companies in this sector is sufficient?

08:47 Or that it may exceed the market demand?

08:50 No, it is considered sufficient for the market

08:53 And it can provide services well

08:56 Because, of course, there are very large companies

08:59 And there are companies that work on a small scale

09:02 So these companies are the origin

09:04 Now, the market for them is new

09:08 And they are gaining more experience

09:10 And little by little, they will have a few better clients

09:14 And they will be able to acquire a few more

09:16 But does this market need new companies?

09:18 Will it be subsidized?

09:20 I imagine that in the current circumstances

09:22 You don't need new companies

09:24 Until the rest of the companies organize themselves in the next way

09:28 Let me ask you about the economic decisions

09:30 That were taken, whether to reduce the exchange rate

09:33 Or even the foreign currency fluctuations

09:36 That occurred in the last period

09:38 How do you see its impact on the entire economy in Egypt in general?

09:41 And on the financial sectors in particular?

09:44 Let's talk about the economy in general

09:48 It is stable

09:50 Most of the businessmen were in a race

09:54 How to save, how to get, how to work

09:57 How to save?

09:59 Yes, of course, and the prices were a disaster

10:03 Prices in products, in products

10:06 Anywhere in the product

10:08 Prices were very difficult for you

10:11 And it was difficult for you to stick to your contracts

10:14 So you always put a big over in everything

10:18 So that you are safe

10:20 Today, no, prices have become real

10:23 And the reality that exists

10:27 And there is a very, very big case of stability

10:31 And this will lead to

10:33 When the interest rates fall

10:36 It will lead to the market moving better

10:39 And companies will open more

10:42 Growth will begin

10:44 I expect all this in the coming period

10:47 But let me ask you, I always ask this question

10:50 What are the guarantees that make us

10:53 We are convinced that what happened after 2016

10:56 Will not happen again in 2024?

10:59 The market is learning

11:01 The officials also see the situation of the market

11:05 There are many people who took advantage of the situation badly

11:10 This makes you more vulnerable

11:13 In the coming period

11:15 And you deal with the market in general

11:17 So I think we have gained a lot of experience

11:20 And don't forget that the market is still growing

11:23 It is still growing a lot during this period

11:27 So I imagine that what happened will not happen again

11:32 And all people learned from the lesson

11:35 And we will be able to be conservative and move with the market

11:39 I mean, it will increase by one or two pounds

11:41 The market will understand this

11:43 And it understands very well that there is a demand and a supply

11:47 I don't have a problem with listening to the dollar

11:49 With 60 pounds, but inside like outside

11:51 As they say, the market will be the same

11:53 Mr. Said, I will continue with you this episode of the weekly dialogue

11:56 But let me have a break

11:58 Our viewers will call me for a break

12:00 And then we will continue this episode of the weekly dialogue

12:02 Stay with us

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12:17 Welcome again, our viewers

12:19 We continue this episode of the weekly dialogue

12:21 Our guest is Mr. Said Zaatar

12:23 President of the Egyptian Union for Consumer Finance

12:25 And the executive director of the company Contact Almaliyah Alqabida

12:28 Mr. Said, welcome again

12:30 Welcome

12:31 We will start with the financial context

12:34 And of course, a big activity as we mentioned in the first episode

12:37 Regarding consumer finance

12:39 The size of the financial reserve of the company by the end of 2023

12:43 The size of the reserve may be by the end of 2023

12:47 It reached 20 billion

12:49 And this is a very large size as a reserve

12:52 Maybe the new lending or the size of the funds

12:57 During the year reached 16.5 billion

13:01 And this was an increase of about 50% from 22%

13:05 And this is of course a result of the variety of products

13:09 And the expansion that we do every period

13:13 If it is of course within the Egyptian market

13:16 We are located in maybe 80 branches

13:18 So a very large growth

13:20 And at the same time, the friction that exists in the clients

13:24 Is considered very small because the company's experience

13:28 Has increased during the past period and has become

13:30 And the conditions of lending and trust have become more strict

13:34 Not strictly, but for Contact maybe it is not at the same rhythm

13:38 From the beginning until today

13:40 Because it has a correct financial policy

13:43 And it is able to see the market in a good way

13:46 It measures the market in general

13:48 It knows a reserve

13:50 It knows a job and a job

13:52 How is its income

13:54 So it can go in the right direction

13:59 You talked about a large growth in 2023

14:02 What are your expectations for 2024

14:04 If we take into account the current economic changes?

14:08 Contact is against challenges

14:11 It always breaks any challenges it faces

14:15 It sees crises and can make opportunities out of them

14:19 So maybe during the Corona

14:23 We were expanding and growing and reached 80 branches

14:27 Today we see this as a new challenge

14:30 The challenge comes from several things

14:32 It comes from market conditions

14:35 It comes from profit prices

14:38 It comes from competitive companies

14:40 Which are doing well

14:42 And we respect all competitors

14:44 So we can work and develop ourselves

14:48 Technology also helps us grow

14:52 How much growth do you expect?

14:54 We always aim for 40-50%

14:59 Growth in the size of the reserve

15:01 The development bonds

15:03 You had many developments bonds

15:06 How much did you reach in 2023?

15:08 Is there a plan to issue more development bonds?

15:11 In 2023, our development bonds reached 6.6 billion

15:19 Because we have a strong team in the finance sector

15:25 They can see all the alternatives

15:28 It's not just bonds

15:30 We have many financing tools

15:33 We were ahead of the curve

15:35 It's the one that started the development in Egypt

15:38 It's the biggest issuer of bonds in Egypt

15:40 It was ahead of the curve

15:43 We always see the new

15:51 And we can go to it

15:53 We try to see different financing tools

15:58 To reach the best price for the company

16:02 And for the client

16:04 Is there a plan to issue new development bonds?

16:07 We heard 1.5 billion

16:09 We are working on a new issuer

16:13 Maybe in the final stages

16:15 We are taking the construction agreements

16:17 1.5 billion pounds?

16:18 Almost in these limits

16:20 You talked about the bonds

16:22 Is there a plan to issue more bonds?

16:25 You talked about 2 billion pounds

16:28 We are working on it

16:30 We are working on issuing 2 billion

16:34 We think that this issue will increase

16:37 We are looking at the market

16:40 We are measuring the market

16:42 And the demand for the bonds

16:44 If it's in the bonds or the market

16:46 When do you expect to issue the first bond?

16:49 In April, we will be issuing this and that

16:54 Regarding the falls

16:57 The return on the falls is much less

17:00 Than the return on the bank loan

17:05 How will this help the company

17:08 To re-utilize this money

17:10 And re-finance it with a lower interest rate?

17:13 We are working with the market

17:15 We are looking at the market and its demands

17:17 At the same time, we can determine our prices

17:20 This is related to our relations with the traders

17:24 We can take certain dividends

17:26 And give it to our client

17:28 We can move in the market

17:30 We have many tools

17:32 We can reach the client and price it properly

17:36 The price commission in the group

17:39 Can look at the market as a whole

17:42 We can see the competitors

17:44 We can see the prices in the market

17:47 We can reach the best prices

17:51 And at the same time, we can keep the competitors

17:54 But the price here also depends on the return

17:58 That was obtained through this interest rate

18:01 This is a cost, and in front of it, there are costs

18:04 You can see your cost in financing

18:06 And you can price it properly with the client

18:09 The expansion plan

18:11 Whether inside the Egyptian market or outside

18:13 Let's start with the internal expansion plan

18:16 We are present in all the Egyptian governorates

18:21 Maybe in the coming period

18:23 We will be present in a project

18:25 In the Rass el-Hikma

18:27 We are trying to be present in the new valley

18:30 Because we have a lot of activity there

18:32 Through the agricultural lands there

18:35 We are providing the green financing product

18:38 Which is solar energy

18:40 This helps a lot

18:42 It preserves energy and at the same time

18:45 It preserves the environment

18:47 And at the same time, it can serve the farmers there

18:50 Maybe these are the branches

18:52 That we think we will expand

18:54 But does the company seek to obtain new licenses

18:58 Especially in financing small and medium-sized projects

19:02 Or small-scale financing?

19:04 We are working on a project inside the company

19:07 To address the issue of financing small and medium-sized companies

19:12 And we are taking steps

19:14 And we are doing a market experiment

19:16 And we are studying the market well

19:18 Our activities, as you know

19:20 The company has the unique thing in the market

19:24 Which is its integrated activities

19:27 If it is financing or insurance

19:30 And maybe the two insurance companies

19:32 Are for life insurance and property insurance

19:35 They can serve our activities

19:37 And at the same time, it is for the market as a whole

19:40 What I want to say is that the integrated group

19:43 Has all the activities that help it grow and grow a lot

19:48 But do you need to obtain a license

19:50 For financing small and medium-sized projects

19:52 Or small-scale financing?

19:54 Of course, I will need a license

19:56 But first, we measure the market

19:58 And we do our studies well

20:00 Because we are present in all the Egyptian provinces

20:03 So we can do our table studies

20:05 It doesn't take more than a week

20:07 We have a market impact as a whole

20:11 We know very well what projects

20:13 That can start and start well

20:16 And we always don't have the issue of imitation

20:19 When we think of something

20:21 We try to be unique in the way we deal with our client

20:27 And in the product that we will offer

20:30 But you see that small-scale financing

20:32 For example, what addition can you offer to a contact company

20:35 Especially that the financing costs

20:37 Are usually small amounts

20:39 Yes, maybe the financing is up to 100,000 or so

20:42 So we never give money to the client

20:47 We only finance the equipment for the client

20:54 So if the client wants a sewing machine

20:57 We are responsible for getting it

20:59 We will not work like the rest of the market

21:01 So you will not give clients direct financing?

21:04 Not at all

21:05 In small-scale financing

21:07 If someone wants to open a supermarket

21:09 Or needs products

21:11 This is not the secret line

21:13 I want to help the state in developing more

21:16 We are present in all the provinces of Sa'eed

21:18 And we are present in the Delta as a whole

21:20 We study the market well

21:22 We see it well

21:23 And we can expand in small-scale

21:26 With the client in a completely different way

21:29 Other than giving him money

21:31 And then he can get a water supply

21:35 I want to give him something that he can produce

21:38 And he can continue to pay his expenses

21:41 And be assured of these things

21:43 How much investment do you expect to see in 2024?

21:47 We want to reach a funding of 23 billion

21:54 In 2024?

21:56 Yes

21:57 And we are expanding

21:59 As you heard

22:01 You have the idea that we are going to the UAE

22:05 To start the Gulf market

22:07 This is my next question

22:09 The UAE's step and the establishment of a company in Dubai

22:12 Is a goal to expand in other Gulf countries

22:15 And what are the most prominent countries?

22:17 Of course

22:18 We may have started in the UAE

22:21 But we have a plan to expand in the Gulf countries

22:26 And maybe in other European countries

22:28 We will need our services

22:30 We do not have a plan to stop at our expansion

22:38 No, we always think again

22:40 And we think how to expand more

22:43 How to offer our products to the largest number of people

22:48 What are the other Gulf countries that you can expand in?

22:50 Of course, Saudi Arabia is a big market

22:53 There are 5 million Egyptians

22:55 We may have started in the UAE

22:57 As soon as we studied the market there

23:01 Today, Saudi Arabia is expanding a lot

23:04 And growing in a scary way

23:08 We would like to be there

23:10 You mean the Egyptians working in the Gulf countries

23:13 Yes, of course

23:14 We offer our services to the Egyptians abroad

23:19 This is a step

23:20 But the next steps

23:22 Anyone who needs funding from us

23:24 We will deal with him from all nationalities

23:27 African markets

23:28 And maybe you have an experience of expanding in the Kenya market

23:32 Are there other countries in the African continent

23:35 You are aiming to expand in?

23:37 In Kenya, we are with a group of Mansour

23:41 They are the agents of Qatar Billard

23:44 We have a leasing company with them

23:47 Maybe the company did not focus on the products of the group

23:52 It offers leasing to agricultural equipment

23:57 And leasing to transport vehicles

24:01 We are expanding more with doctors

24:04 To offer medical equipment

24:07 We are expanding well

24:09 We study the markets well

24:11 We study the product

24:13 We study our client

24:15 To see how long his commitment is

24:17 All this will be judged in the next expansion

24:20 How do you save the foreign criticism for these expansions?

24:23 Especially when we talk about expansions outside Egypt

24:26 When we started, the banks were saving us

24:30 Maybe in the next period

24:32 There will be other expansions

24:34 And we will be able to save through the banks

24:37 With the stability of the exchange market

24:40 We will be able to save through our banks

24:43 To be present in foreign markets

24:46 Mr. Saeed, thank you very much for this interview

24:48 You are welcome

24:49 We have reached the end of this episode of the week's interview

24:53 You came from Cairo

24:54 Our guest was Mr. Saeed Zaatar

24:56 President of the Egyptian Union for Consumer Finance

24:58 And the executive director of Kontact, the holding financial company

25:01 See you in the next episode

25:03 Goodbye

25:05 [Music]

25:17 you

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