The Egyptian stock market must take an active role in the financing of scientific research by encouraging member companies to fund scientific research projects, said Mohsen Adel, a financial analyst. He also urged specialized companies to finance scientific research with shares in their Initial Public Offering. When compared to international rates of investment, Egyptian spending on research programs is weak and presents a main obstacle to scientific development, Adel said. He added that the only path to scientific breakthroughs is through increased national programs that incentivize private sector investment in scientific research. Scientific research investment in the Arab states is financed largely by the state – between 85 and 90 percent – while private companies in the EU contribute roughly 45 to 50 percent of the total investment in science at research centers and universities. Adel added that scientific research investment constitutes only one percent of Egypt's total GDP – a percentage below the global average. A new idea designed to both encourage scientific research and increase investment is in the works, said Adel. The idea, which is also hoped to have positive economic effects, involves specialized companies dedicating a certain number of shares in their IPOs exclusively to scientific research projects, adding that such guaranteed funds often spell success for international scientific centers. The idea can be implemented now, Adel claims, urging investors to prioritize shares for development in electronics, marine sciences, environmental and information technologies, space sciences, agricultural technology and efficiency in manufacturing. Such investments will achieve marked economic revenue by the third year, he claims. He said that financing such projects through IPOs will achieve a number of advantages such as expanding private participation – which would prevent any Ministry from commandeering the authority over projects – and encouraging projects in other developing fields. In addition, the program will set a precedent of private investment, potentially ensuring further private investment in future projects. Egypt must focus on science and technology when developing Egypt's industrial sector, said Adel, in order to compete with other countries, stressing the need for more sophisticated information and telecommunication technologies. Adel claims that Egypt must also use science and technology to achieve social and economic development by drawing comprehensive scientific and technological plans, supported by large financial investment. He added that such projects will improve Egypt's standard of living, create a technologically-literate public and achieve sustainable, environmentally-friendly development in the industrial sector.
