ADCB: Economic stability propels the bank’s expansion in the Egyptian market
Economic reform reinforces positive economic growth…. Egypt’s credit rating stabilized to safe outlook
Mr. Ihab El Sewerky, the CEO and Managing Director of Abu Dhabi Commercial Bank (ADCB), stated that the economic reforms in Egypt steered its positive economic growth ahead amid the Covid-19 pandemic, which led to solidifying the confidence of countries and investors in the Egyptian economy. Previously, Egypt was classified among the high risk markets. Yet, the economic reform utterly changed the global views about Egypt, as it is currently deemed among the ideal destinations for foreign investments, said Ihab.
The national economy would have faced a drastic recession but for these reforms. Egypt would have faced a prospect of severe currency devaluation similar to that of Turkey as the Turkish currency pushed high inflation rates. On the contrary, Egypt’s inflation rate reached 4.5%, compared to inflation rate, which registered a record hike above 34% after liberate exchange rates, added Ihab. As a result, this is reflected on encouraging the foreign investments.
Egypt rendered the sole country in the Middle East that witnessed positive growth rate, unlike the negative growth rates witnessed by several countries. Unlike various markets, the Egyptian pound strengthened further along with boosting the foreign investments.
Hosted on “Bonook Wa Isithmar “ T.V. show, El Sewerky highlighted that Egypt’s economy is set to become among the strongest in the world, especially as the confidence in the Egyptian economy was restored while reaching the IMF loan agreement, requesting international funds, as well as the coverage of Egypt’s bond issue underwriting. Besides, the Egyptian pound is among the best performing emerging market currencies.
Backed by Egypt’s good credit rating, the investments in the State’s EGP5bn bond issuance amounted to EGP 2bn due to the good terms and conditions on the issue, which set out offering long-term interest at a suitable set rate, stated the CEO. Besides, the foreign reserves had witnessed an increase on an unprecedented scale, as one of the rewards gained due to the economic reform program.
The CBE’s major role in maintaining Egypt’s economic stability
The CEO of ADCB- Egypt also praised the CBE’s essential role in implementing the reform program as well as supporting the Egyptian economy during past years. Besides, the CBE’s role in strengthen national banking sector positively reflected on the Egyptian economy and the banks’ financial positions due to its economic decisions and initiatives.
He also referred to the positive impact of the CBE’s decision on upgrading Egypt’s credit rating, as Egypt’s foreign reserves recorded unprecedented historical level, reaching $45bn prior to the outbreak of Covid-19 pandemic.
He added that the CBE’s initiatives fueled up the economic rebound in Egypt and revived various major sectors, being a catalyst for fostering the Egyptian economy, even amid coronavirus pandemic that led to market shutdown worldwide.
On the other hand, El Sewerky revealed ADCB’s efforts towards launching new banking products in order to fulfill the Egyptian customers’ demands, highlighting that offering digital banking products is considered the bank’s top priority, along with ensuring a variety of banking products for its customers. This is in addition to its nationwide branch network.
He also affirmed that the bank is doing its utmost for leveraging the potentials of its human resources through ongoing training programs for its employees, even during the coronavirus crisis. During the outbreak, the bank has been conducting virtual employee training programs.
Regarding ADCB’s participation in financing the national projects, the bank takes a part in financing economically sustainable projects. Moreover, Egypt’s economic stability steered up the bank’s expansion in the Egyptian market, affirmed El Sewerky.