Issued capital in Egypt down 19 per cent, with job creation up from previous week

The issued capital for new companies declined 19 per cent, but those new companies are expected to create more jobs than the ones from the previous week

The total issued capital for newly established companies declined to LE 194 million in the period from 24-28 July compared to LE 239 million in the week before recording a cut of around 19 per cent, show Investment Authority figures.
However, the decline was less severe than the week before, when it went above 80 per cent. Two weeks ago, the total issued capital for newly established companies reached LE 1.23 billion.
Last week saw the establishment of 127 new companies, compared to 146 companies established in the week before.
It was estimated, however, that these new companies will generate some 2360 job opportunities, versus only 1529 last week, despite this week's decline in issued capital and the number of newly established companies.
More than 90 per cent of capital invested was Egyptian. It was followed by non-Arab investors at 5.6 per cent, then Arabs, who only had a modest share of 3.6 per cent, according to data from the General Authority for Investment (GAFI).
Cairo saw the highest number of new companies with seven companies, however Alexandria came in the first class in terms of issued capital, followed by Suez, Cairo then Ismailia.
Of the companies established, 57 are in the service sector, 21 manufacturing, seven communications, six in construction, five in agriculture and three in tourism.