The government plans to launch political risk insurance to support the overseas expansion of Egyptian construction and building companies and raise their ability to compete internationally.
To this end, Dr Mohamed Farid, Minister of Investment and Foreign Trade, held a meeting with the Export Council for Construction and Building and representatives of insurance companies, to discuss mechanisms for providing an integrated insurance policy against political and commercial risks, according to a report by Amwal Alghad.
Insurance industry leaders who attended the meeting included Mr Alaa El-Zoheiry, Chairman of the Insurers Federation of Egypt and Managing Director of GIG Insurance Egypt, and Ms Nevine Gamea, Chairperson of Misr Insurance Company.
The government aims to position Egypt as a regional hub for engineering and construction services, using the new insurance products to help these firms confidently enter and compete in new regional and international markets.
Dr Farid said that the Ministry is working to coordinate with insurance companies to design insurance products that suit the needs of the construction sector. The insurance coverage is part of an integrated package of financing and support tools aimed at reducing risks and encouraging Egyptian companies to increase their external activities, and contribute to raising export rates and foreign currency earnings.
The meeting also emphasised the importance of cooperation between construction and building companies and insurers to form a supportive system for growth, especially in light of the challenges associated with working in international markets, most notably, requirements for guarantees and non-commercial risks.