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Al-Ahram Weekly On-line 9 -15 November 2000 Issue No.507 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly On-line 9 -15 November 2000 Issue No.507
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Books Travel Living Sports Profile People Time Out Chronicles Cartoons Letters The view from within
Great expectations
By John Bond *
HSBC's investment of nearly $140 million in Egypt, was made following a great deal of study and preparation. We view the current demand here for personal banking and financial services as only the beginning. A growing middle class with rising aspirations and increasing exposure to other countries will expect more from financial institutions. At HSBC, we believe that we are well-placed to provide the services that these people require.
We are fully aware that the Egyptian economy is passing through a challenging period -- there are the challenges of privatisation and perhaps the payment of external accounts. In my view, these will probably be overcome. When we make major investments, we do not take the short-term view, looking ahead only a year or two. Instead we look to the next 25 or 50 years.
A positive trajectory for investments is key. We believe that we see this here. The Egyptian government is taking prudent measures to stabilise and expand the economy, stimulate the capital market, free up exchange controls and encourage privatisation. After listening to respected authorities like the World Bank and the International Monetary Fund, we make decisions based on our own experience.
This is a country which has two of the hallmarks we look for when seeking investment opportunities: good governance and a strong education system. In my judgement, Egypt gets high marks on both of these counts. Such attributes are, for us, more important than debt service ratio and other economic indicators.
* Sir John Bond, Chairman of HSBC (Hong Kong Shanghai Banking Corporation) speaking to Egypt's International Economic Forum. HSBC last October raised its stake in the Egyptian British Bank from 40 to 90 per cent.
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