Against this backdrop, a drive for individual financial empowerment is compelling banks and other financial institutions to focus on platforms as much as products[2]<\/a>. \u00a0Concurrently, the acceleration of fintech, with its explosion of entrepreneurial start-ups, is permitting more cross-sector partnerships to spur growth and attract new talent to the market. \u00a0As an indicator of this growing potential, look no further than Tamara, a buy-now-pay-later startup serving the MENA region, which raised a record US$ 110 million in funding upon launch in 2021,[3]<\/a> and tabby<\/a>, which has over 1.1 million active shoppers in Saudi Arabia and the United Arab Emirates, and has raised a total of more than US$ 180 million in debt and equity, including US$ 150 million in 2021<\/p>\n Cutting-edge software that enables faster interactions with and between financial institutions is encouraging the speedier and more targeted movement of capital.<\/p>\n Large mergers are already under way as markets consolidate, see 2021\u2019s amalgamation of Saudi Arabian retail lender NCB and smaller rival Samba, or Saudi Arabian British Bank (SABB) and Alawwal Bank.<\/p>\n This brave new world has the potential to revolutionize every stratum of the Middle East economy \u2013 from the family seeking a loan for a new car, to major multinationals pursuing international funding for growth.<\/p>\n Cryptocurrencies and central bank digital coins are rising in prominence, with fintech disruptors such as Saudi Arabia\u2019s STC Pay and Al Rajhi Bank\u2019s UrPay establishing market share. \u00a0IBM, meanwhile, is partnering with the UAE and Saudi Arabia on Project Aber, a system of managing payments via a single regional currency and convenient app-based trading platforms such as JIMCO<\/a>\u2019s Rain<\/a> driving consumer adoption.<\/p>\n As these tools and levers become increasingly wired into the global financial mainframe, artificial intelligence (AI) and other predictive analytic systems are enabling Middle Eastern financial markets to be more responsive to fluctuations and opportunities \u2013 real-time data for live decision making.<\/p>\n This wave of digitalization is set to encompass the banking, asset management and insurance sectors as part of a paradigm shift to a Banking as a Service (BaaS) ethos.<\/p>\n Among the regional markets at the forefront of these changes is Egypt, which is keen to seize the momentum of the rapidly evolving terrain to future-proof its own financial services market.<\/p>\n A new banking law was passed in September 2020, creating a comprehensive regulatory regime covering payment systems, services and fintech.\u00a0 It aims to encourage growth and innovation in these important areas, while also strengthening financial inclusion \u2013 a key objective of the government.<\/p>\n Banking reform is seen as a vital pillar of the country\u2019s on-going economic reform program, creating a strong framework to underpin the regulation of its banking and payments industry.\u00a0 It also seeks to support the sector\u2019s competitiveness on the global scene and help to achieve Egypt\u2019s economic development and diversification objectives.<\/p>\n As part of its financial services modernization program, the government is also taking affirmative action to encourage innovation. \u00a0In March 2022, the National Bank of Egypt, Banque du Caire and Banque Misr unveiled a joint fund, NClude, to stimulate the country\u2019s fintech industry to the tune of US$ 85 million \u2013 a move supporting President Abdel Fattah Al-Sisi\u2019s desire to drive growth in emerging technology fields.[4]<\/a> \u00a0The fund portfolio includes Lucky, an Egyptian fintech providing financial facilitation services, which has already secured a US$ 25 million commitment.<\/p>\n AI is seen as harboring particular potential as a catalyst of tech-driven transformation.\u00a0\u00a0 The Information and Decision Support Center (IDSC) is aiming to ensure that AI constitutes at least 7.7% of GDP by 2030[5]<\/a>.\u00a0 The move, part of the country\u2019s Visions on the Road to Development strategy, will help integrate innovative technologies into the financial services sector.\u00a0 IDSC notes that Egypt already leads nine Arab countries in terms of digital wallets and electronic payment services.<\/p>\n With its ambitious plans for the financial services sector and its resilient economy, Egypt is already proving a popular destination for investment from the UAE and Gulf Cooperation Council (GCC) members. \u00a0First Abu Dhabi Bank (FAB) this year offered to buy a controlling stake in EFG Hermes, Egypt\u2019s largest investment bank, valuing the lender at US$ 1.18 billion[6]<\/a>. \u00a0If successful it will be FAB\u2019s second major deal in the country in as many years, after its purchase last year of the Egyptian business of Lebanon\u2019s Bank Audi.<\/p>\n With the vibrant Egyptian market poised for exponential growth, we spoke to Mohamed El Gazzar, Chief Executive Officer of Abdul Latif Jameel Finance Egypt<\/a>, about developments in the country\u2019s financial services market, the business\u2019s progress so far, and his ambitious expansion strategy.<\/p>\n MEG: <\/strong>We aim to provide innovative financing solutions that facilitate and improve the quality of people\u2019s lives. \u00a0We are proud to be part of Abdul Latif Jameel<\/a>, and we leverage the group\u2019s long heritage of global achievements that extends over 75 years<\/a>, along with its deep knowledge and broad experience in the Egyptian market for more than 21 years. \u00a0This \u2018glocal\u2019 formula is the lifeblood that fuels our business and ignites our power to innovate. \u00a0Our core values <\/a>form the foundation of our organization and drive us to Respect, Improve, Pioneer, Empower and Act with Integrity. \u00a0We are also committed to a customer-centric approach that enables us to anticipate and address the growing and ever-changing needs of clients.<\/p>\n Leveraging the extensive experience and the strong partnerships of Abdul Latif Jameel in the mobility sector across the in MENA region, in Europe and Asia, Abdul Latif Jameel Finance Egypt<\/a> provides a portfolio of auto-financing solutions for both individuals \u00a0\u00a0\u00a0\u00a0We also provide a comprehensive range of consumer finance products especially designed to meet our customers\u2019 needs. \u00a0Our financing solutions serve different purposes that help customers improve their life quality. \u00a0Our range of services include insurance as well as finance for cars, travel, and education.\u00a0 We are proud to be a life-enabler, providing the means for the moments that matter.<\/p>\n MEG: <\/strong>Last year, 2021 was a remarkable year for us. \u00a0We invested in a new operating platform in line with our digital transformation strategy to provide financing solutions for all social segments in Egypt. \u00a0To achieve this, we consistently create innovative financial services using advanced software and technology to simplify processes and increase customer satisfaction and financial inclusion. \u00a0This was positively reflected in our sales performance, with sales up 10% on last year. \u00a0We look forward to doubling this percentage and doubling the number of our customers in 2022.<\/p>\n MEG: <\/strong>Yes, we plan to double our total number of credit lines by the end of 2022. \u00a0We aim to do this by leveraging the latest fintech to provide financing solutions that reach large numbers of customers throughout Egypt, especially those who lack access to financial services, driving financial inclusivity, a key component of the Jameel Family\u2019s vision. \u00a0We also provide innovative financing solutions and programs that make it easier and more convenient for customers to finance things like solar panels on houses, property refurbishment, furniture, travel and tourism, educational and health services, among other things.<\/p>\n MEG: <\/strong>Our strategy is based on our ability to cope with market changes while maintaining solvency. \u00a0Our total equity \u00a0currently amounts to approximately EGP 500million (US$ 27 million), which allows us to underpin a solid market expansion strategy.<\/p>\n MEG: <\/strong>Yes, of course we\u2019d like to increase our sales volumes. \u00a0We are already one of the top consumer finance companies, in terms of sales, in the Egyptian market, as per the Financial Regulatory Authority (FRA) reports. \u00a0We\u2019d like to become one of the top 4 by end of 2022. \u00a0To help us achieve this, we aim to double the number of customers by the end of the year.<\/p>\n MEG: <\/strong>The Egyptian market is huge, and it still has massive potential for growth. \u00a0We see the expansion of the consumer finance market as a complement to the more traditional financial services provided by banks. \u00a0We intend to reach customers through innovative mediums with more new-to-market products that are tailored made to address their needs.\u00a0 It will make it easier to reach larger customer segments and contribute to much greater financial inclusion in the country.<\/p>\n MEG: <\/strong>Car sales were negatively affected by the international crisis caused by the decline in the production of smart chips, which led to price inflation. \u00a0Sales figures were also negatively affected by the impact of the pandemic.\u00a0 They have still not fully recovered, although we are expecting to see an improvement over the second half of 2022.\u00a0 The volume of used car sales is rising due to a combination of increased supply and declining interest rates.<\/p>\n MEG: <\/strong>Consumer finance is one of the main tools for implementing the country\u2019s financial inclusion strategy and reaching larger customer segments. \u00a0Consumer finance companies generally have more flexibility to engage harder-to-reach customers outside the big cities, like Cairo and Alexandria. \u00a0This leads to and helps to lay the foundations for greater financial inclusion.<\/p>\n MEG: <\/strong>Yes, we preparing to acquire an insurance intermediary license, as the FRA has recently opened up the market for new applications. \u00a0We are exploring the introduction of high-quality insurance products that are as yet unavailable in the local market.<\/p>\n Our aim is to use state-of-the art technology to provide these products, while collaborating with the local insurance companies. \u00a0We believe this approach will enable us to meet the increasing demands of different social segments, such as young people and tourists, in addition to providing health insurance services.<\/p>\n We are also planning to grow on the small and medium enterprise SME arena, as well aiming to \u00a0provide unique products and services to our merchant partners.<\/p>\n MEG: <\/strong>Financial inclusion is still a major challenge.\u00a0 The government\u2019s moves to encourage growth and innovation in fintech are a positive step in this regard.\u00a0 They should help to support financial services companies in improving their performance and using digital technology to reach more customers, helping to increasing sales and overcome some of the current challenges. \u00a0The cost of business also represents a challenge for consumer finance companies. \u00a0However, there are a number of legislative changes under discussion to improve the competitiveness of consumer finance companies and facilitate further growth.\u00a0 I firmly believe the future looks promising for consumer finance businesses in Egypt.<\/p>\n [1]<\/a> https:\/\/www.youthpolicy.org\/mappings\/regionalyouthscenes\/mena\/facts\/#FN13<\/a><\/p>\n [2]<\/a> https:\/\/www.talkwalker.com\/blog\/the-future-of-the-financial-industry-in-the-middle-east#<\/a><\/p>\n [3]<\/a> https:\/\/www.oliverwyman.com\/middle-east\/media-center\/2022\/feb\/predicted-trends-for-the-middle-east-financial-services-sector-in-2022.html<\/a><\/p>\n [4]<\/a> https:\/\/www.ecofinagency.com\/finance\/2203-43476-egypt-s-public-banks-launch-85mln-funds-in-support-to-the-fintech-industry<\/a><\/p>\n [5]<\/a> https:\/\/www.egypttoday.com\/Article\/3\/113051\/Egypt-targets-increasing-AI-contribution-to-GDP-to-7-7<\/a><\/p>\n [6]<\/a> https:\/\/www.pressreader.com\/uae\/gulf-news\/20220214\/282136409833462<\/a><\/p>\n","protected":false},"author":18,"featured_media":98853,"template":"","tags":[],"acf":[],"yoast_head":"\nWhat are the types of services currently provided by Abdul Latif Jameel Finance Egypt?<\/h2>\n
![\"A](\"https:\/\/media.alj.com\/app\/uploads\/2022\/05\/Abdul-Latif-Jameel-Finance-Egypt-Team-Members.jpg\")
How do you evaluate the company\u2019s performance in 2021?<\/h2>\n
![\"Abdul](\"https:\/\/media.alj.com\/app\/uploads\/2022\/05\/ALJFE-office.jpg\")
Do you plan to launch different financing solutions in 2022?<\/h2>\n
Do you intend to increase the company\u2019s equity to match the market expansion plans?<\/h2>\n
Are you aiming to increase your market share in 2022?<\/h2>\n
How do you evaluate the competition between consumer finance companies and banks in providing consumer finance services?<\/h2>\n
Automotive finance has historically been a large part of your business. \u00a0How has the automotive market performed in recent years?<\/h2>\n
Do you think consumer finance will help the government to achieve its objectives around greater financial inclusion?<\/h2>\n
Are you planning to apply for any new financial licenses as part of your growth strategy?<\/h2>\n
What are the main challenges you see facing the consumer finance market in Egypt? And how can these challenges be overcome?<\/h2>\n
![\"Abdul](\"https:\/\/media.alj.com\/app\/uploads\/2022\/03\/Abdul-Latif-Jameel-IWD-1.jpeg\")