Islam Abdelhameed - 2014-09-21 12:21:44
Twelve insurance companies operating in Egyptian market have bought EGP 549 million worth of investment certificates to finance the country’s new waterway project along the Suez Canal.
In addition, the Insurance Federation of Egypt (IFE) has also purchased EGP 33.5 million worth of the new Suez Canal investment certificates.
Therefore, the total contribution of the insurance sector in Egypt to the national Suez Canal project would reach up to EGP 582.5 million.
Another contribution was made by Misr Insurance Holding Company, yet the company said the value of purchased certificates will be disclosed later through a statement from the Ministry of Investment.
According to the experts, the vital role played by the insurance sector in Egypt will not only be in form of buying the investment certificates, but also in form of providing the insurance cover for both the project and the employees working on it.
In the same vein, the chairman of Delta Insurance Company El-Sayed El-Gohary stated that the insurance companies’ investments in the new Suez Canal project come as part of their national duty towards boosting the country’s economy. He also referred to the high interest rates of the Suez Canal investment certificate, which amount to 12%.
The Egyptian official further stated that the insurance firms’ contribution come as a part of their national role in supporting the national economy.
In case of launching new investment certificates to finance the country’s electricity shortage, it is expected to witness higher turnout among the insurance companies, he added noted.
The new Suez Canal project aims to attract more ships and boost the country’s income. Egypt’s Suez Canal brings in US$ 5 billion annually and is a major contributor to Egypt’s economy, which was suffered since the 2011 revolution.
The table below shows the names of the 12 insurance companies invested in the second Suez Canal project: More»