The new partnership between the two companies marks the initial strategic steps towards larger collaborations in the future, leveraging the extensive expertise both entities possess in their respective fields.
Cairo Leasing Corporation and eTax, have signed a financing agreement for the purchase of eTax’s administrative headquarters in Smart Village. The signing ceremony was attended by Ahmed Sherif, CEO and Managing Director of Cairo Leasing Company; Ihab Anis El-Wadoud, Head of Business Sector at Cairo Leasing; Khaled Abdel-Ghany, CEO and Managing Director of eTax; and Mohamed Khalil, Head of Finance at eTax.
Khaled Abdel-Ghany, CEO and Managing Director of eTax, stated that this agreement aligns with eTax’s ambitious strategy to achieve new expansions that keep pace with the rapid growth of its business operations and to enhance its assets through innovative and effective financing solutions. He expressed his satisfaction with this collaboration with CLC, highlighting their substantial expertise in the field. He emphasized that this investment enables eTax to enhance its capabilities and focus on developing its services to meet market needs using the latest technologies. This reflects the reliability of e Tax as an attractive entity for investment financing and coincides with the expansion of vital projects related to the digital transformation plans of the Ministry of Finance and the Egyptian Tax Authority. He noted that the company aims to keep up with the digital renaissance and technological boom led by the Ministry of Finance in adapting financial technology to improve tax services, meeting taxpayer needs, and providing convenience, thereby enhancing the attractiveness of the tax system and encouraging more taxpayers to join.
Abdel-Ghany added that the financing of the new headquarters aligns with the company’s plans to attract more talents and expertise in the technology sector, as part of its strategy to develop services by relying on a smart and updated infrastructure based on the highest global technologies, which the company strives to achieve.
He explained, “The new headquarters provides a modern working environment that enhances employee experience and productivity, affirming our commitment to sustainable growth while maintaining the efficiency and flexibility of the company’s financial liquidity management and investing its resources in core activities. This reduces the burden of asset updates and allows us to manage company operations with maximum efficiency using the best professional management practices.”
On his part, Ahmed Sherif, CEO and Managing Director of Cairo Leasing Corporation, stated that the agreement with eTax represents a strategic partnership, not merely a financial injection into a company.
Sherif added that CLC’s financing portfolio reached 7 billion EGP by the end of 2023, with a target to close the current year near 10 billion EGP.
He explained that Cairo Leasing interacts with approximately 12 banks and currently has financing lines of around 4 billion EGP, with contracts in progress with two banks for new facilities of about 500 million EGP, expected to be secured within the current year.
He noted that the company’s financing portfolio is diversified across various sectors according to the regulations of the Financial Regulatory Authority, which stipulate that concentration ratios in any industry should not exceed 25% of total financing provided.
Sherif highlighted that the company holds around 400 leasing contracts with major firms in the local market, likely to reach 450 contracts by the end of the current year.
He added that the financing portfolio is balanced between small and large projects, with a maximum of 25% allocated to each sector.
Furthermore, he revealed that they are in the process of obtaining preliminary approval from the Financial Regulatory Authority to add real estate financing to the company’s activities, following the recent general assembly’s approval for the addition.
Sherif stated that the company plans to commence real estate financing operations in the first quarter of 2025, expecting to achieve contracts between 200 and 300 million EGP. The company’s paid-up capital is 500 million EGP.
