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00:00 to benefit from the transfer of profits and diversification of funding sources and the reconstruction of the structure.
00:06 Our local investors recently went to transfer their companies' ownership outside Egypt through foreign investment banks owned by them.
00:14 A move that has been legal for decades, but it has increased in the past few years after several companies in the stock market resorted to it,
00:23 including Domti Food Industries, which acquired the Expedition Alliance for 33% of its shares,
00:30 which is an alliance established in accordance with the laws of the state of Mauritius and also belongs to the Domti family, the largest owner in Domti.
00:37 Recently, the ownership of more than 24% of its shares was transferred to International Dairy Investment in the Cayman Islands,
00:45 and the Eastern investors joined it when they sold their daughter Mohamed Farid Khamis their entire share of the stock, which is now in Manchester.
00:54 People are starting to take this approach to benefit from the laws and privileges that exist in it,
01:02 and that are prohibited for foreign investors or owners of foreign investment banks,
01:08 who own companies here in Egypt and are revalued by foreign currency.
01:16 Therefore, all profits and shares of these companies are regulated and valued by foreign currency,
01:24 and these companies have the right to transfer profits to foreign currency.
01:31 These are steps that are being taken by family companies, and some see their main goal as obtaining more tax benefits
01:38 and enhancing the value of these companies' investments in the face of the foreign currency crisis that Egypt has been witnessing since the outbreak of the Russian-Ukrainian crisis,
01:46 and what followed it from a large rebound to the price of the currency exchange.
01:50 While the ownership transfer operations reflected the prices of these companies' shares,
01:54 the price of the shares of the prisoners increased by more than 122% and the price of the shares of the debtors increased by about 40%.
02:01 The currency takes several advantages, including advantages in the tax benefits,
02:06 and also in the case of the exit, there is an opportunity or it becomes easier in the legal procedures.
02:13 Perhaps here there are some legal procedures that take a longer time and a higher cost,
02:18 mainly for example, the exit exam, and also the independent financial consultation for the preparation of the fair value,
02:27 and these things take time and additional cost.
02:31 Of course, the debtors benefit from this procedure.
02:36 In December, the Central Bank revealed that some individuals founded private-sector companies outside the country
02:43 that work in the activity of distribution and tourism in order to preserve foreign currency abroad.
02:49 It is then the process of restructuring, through which some companies seek to transfer their shares to institutions outside Egypt,
02:58 at a time when Egypt is facing a crisis in foreign currency and a rebound to the price of the currency exchange.
03:06 Farouk Youssef, CNBC Arabia, Cairo.