Egypt Simplifies Procedure for Opening Accounts for Non-Residents

Having lost much of its shipping revenue through the Suez Canal, Egypt is trying to attract as many financial customers and as much hard currency as possible to its banks. On Monday, August 12, the Central Bank of Egypt issued directives to credit institutions in the North African country to “facilitate the opening of different types of accounts for non-resident customers.”

In a circular letter, the Cairo Central Institute wrote, among other things, that “the decision was taken to overcome the difficulties faced by Egyptians abroad and foreign nationals in obtaining basic banking services in Egypt.”

According to the Central Bank of Egypt, in June 2024, “money transfers from Egyptians working abroad increased 66% year-on-year to $2.6 billion.” This was “the fourth consecutive month in which money transfers sent home by Egyptian workers increased significantly.”

“In the second half of the 2023-2024 fiscal year (January-June 2024 – ed.),” emphasized the Egyptian regulator, “money transfers increased by 61.4% compared to the corresponding period of financial year 2022-2023, amounting to $4.6 billion, to $7.5 billion.”

Before the start of the Houthi attacks on ships in the Red Sea, financial revenues from shipping through the Suez Canal amounted to $8-8.5 billion per year. Record profits of $2.3 billion were recorded in the first quarter of 2023. But missile attacks by the Houthis, which began late last November, have almost halved the maritime traffic and, consequently, Egypt’s revenue from this very important maritime artery, built in 1869.