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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
12:04 [Music]
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