The Egyptian Businessmen's Association (EBA) organized a
workshop entitled "The Egyptian SMEs market; opportunities for growth for
start-ups", during which the Executive Chairman of the Egyptian Exchange
(EGX), Dr. Mohamed Farid, discussed the strategic developments of the Egyptian
SME market with the aim of achieving a comprehensive qualitative shift in the
market.
Dr. Farid said that stock exchanges are key player for the
development and growth of SMEs, provided listed businesses are committed to
disclose needed information for investors.
He added that listing in the Egyptian SMEs market provides benefit on
various aspects, including lower cash dividends tax and exemption from capital
gains tax that is not yet applied on listed companies. Also corporate governance is binding to
listed companies contributing to the transformation of companies from family to
institution, and allowing companies better chance of benefiting from financing
through banks if needed.
Hassan
al-Shafei, Chairman of the Small and Medium Enterprises Committee at the
Egyptian Businessmen's Association (EBA), said that the SMEs sector is a vital
factor for economies development, and is an essential element in supporting GDP
and creating job opportunities. He added
that access to the necessary financing for the development of Small and Medium
Enterprises through capital market contributes significantly to the rehabilitation
and development of small businesses as a mean of achieving their goals in a
sustainable manner.
Ms. Dalia
Al-Sawah, a member of EBA’s SMEs Committee, said that EGX has taken necessary
measures for the development of the SMEs in Egypt for the development of
already listed companies and attract companies with high growth opportunities
as well as to work to enhance liquidity.
She added that through listing on the Egyptian SME market her business
grew and was able to promote the required sustainability practices.