RESTRICTED
WORLD TRADE S/FIN/W/12/Add.24/Rev.1
10December 1997
ORGANIZATION(97-5464)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM EGYPT
Revised Offer onFinancial Services
Revision
Thefollowing communication iscirculated attherequest ofEgypt toMembers oftheCommittee
onTrade inFinancial Services.
_______________
Thisrevised schedule isconditional. Egypt retains itsrighttomodify orwithdraw allorpart
ofitsSpecific Commitments onFinancial Services andtolistMFN exemptions.S/FIN/W/12/Add.24/Rev.1
Page2EGYPT
REVISED SCHEDULE OFSPECIFIC COMMITMENTS INFINANCIAL SERVICES
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
FINANCIAL SERVICES
Measures ofspecific application:
A.Insurance Services, themain criteria which theeconomic needs testapply areasfollows:
1. Surplus demand totraditional classes ofinsurance gives newcompanies anopportunity ofworking without harmful competition tothemarket orfinancial
positions ofexisting companies andconsequently policy holders.
2. Exhausting of50percentofthecapacity oftheexisting companies, which iscalculated onthebasis ofsolvency margin, there isasurplus demand inexcess
ofthecapacity which enables anewcompany toachieve itspurposes.
3. Setting upofanewcompany leads toanincrease oftotalretention inthemarket; taking intoaccount thetechnical considerations.
4. Thenewcompanies shall introduce newinsurance covers.
B. Other Financial Services
Commercial presence forconducting theactivities ofother Financial Services (Capital Market Services excluding trading insecurities) should beincorporated
inEgypt totaketheform ofajoint-stock company orapartnership limited byshares.S/FIN/W/12/Add.24/Rev.1
Page3Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
BANKING SERVICES
A. Joint-Venture Banks
(JVB's):
- Acceptance ofdeposits
andother forms of
repayable funds.
- Alltypes oflending,
including consumer
credit, andfinancing of
commercial
transactions.
- Allpayment andmoney
transmission services,
including credit, charge
anddebit cards,
traveller 'scheques and
bankers draft.
- Guarantees and
Commitments(1) Unbound
(2) Unbound
(3) Theshare ofnon-Egyptians inthecapital
ofJVB'sandprivate banks mayexceed
49percentoftheissued capital ofany
bank, without ceiling. Onanon-
discriminatory basis, ownership ofmore
than10percentoftheissued capital of
anybank, except through inheritance,
requires theapproval oftheCBE Board of
Directors.
(4) TheGeneral Manager should have
banking experience inEgypt ofnoless
thantenyears forbanks established in
Egypt other thanbranches offoreign
banks.(1) Unbound
(2) Unbound
(3) Foreign service suppliers, inthecontext
ofJVBs arerequired tooffer on-the-job
training fornational employees.
(4) NoneS/FIN/W/12/Add.24/Rev.1
Page4Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
- Trading forown
account orforaccount
ofcustomers in:
a.Money market
instruments
(cheques, bills
andcertificate of
deposits);
b.foreign exchange;
c.securities.
- Participation inshare
issues andtheprovision
ofservices related to
such issues through
subsidiaries
- Money broking
- Safekeeping of
securities
- Credit reference
services
- Safecustody servicesS/FIN/W/12/Add.24/Rev.1
Page5Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B. Foreign Bank Branches
Same activities specified
under (A)above.(1) Unbound
(2) Unbound
(3) Economic needs testshall beapplied.
(4) None(1) Unbound
(2) Unbound
(3) Branches offoreign banks existing on
5June 1992, (thedateofenforcement of
LawNo.37of1992) maybelicensed to
dealinlocal currency inaddition to
foreign currency subject tothe
satisfaction ofminimum capital
requirement, adequacy ofprovisions and
other prudential measures (Art. 13ofthe
executive regulations ofthesaidLaw).
(4) None
C. Representative Offices
ofForeign Banks
(R.O. 's)(1) Unbound
(2) Unbound
(3) Foreign banks which desire tosetup
representative offices should nothave
branches inEgypt.
- Activities ofR.O.'sshould beconfined to
conducting studies andpotential
investments, acting asliaison withtheir
head offices andcontributing tosolving
problems anddifficulties thatmay
encounter their head offices '
correspondents inEgypt.
(4) None(1) Unbound
(2) Unbound
(3) Unbound
(4) NoneS/FIN/W/12/Add.24/Rev.1
Page6Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
INSURANCE &INSURANCE RELATED SERVICES
1. Life, health, personal
accident(1) None
(2) None
(3) Foreign andjoint venture companies are
allowed onlytocarry onbusiness infree
zones, provided thattheir activities shall
beconfined tothetransactions carried out
inconvertible currencies.(1) None
(2) None
(3) None
- Nomaximum limits required onthe
foreign shareholding infreezones.
- Economic needs testshall apply tothe
inland commercial presence (other thanin
freezones) according tothecriteria as
stipulated inthehorizontal section.
Relaxation ofeconomic needs testshall be
in2000 forlife,health &personal
accident business.
- Foreign insurance companies branches and
agencies arenotallowed.
- Foreign capital equity shall notexceed
49percentofthetotalcapital required
forthecompany (other thaninfreezones)
upto31December 1999.S/FIN/W/12/Add.24/Rev.1
Page7Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
- Asof1January 2000, foreign capital
equity shall beupto51percentofthe
total capital required forthecompany
(other thaninfreezones).
- Legal cessions ofthetotaltransactions
must beceded toEgyptian Reinsurance
Co.according tothepercentages tobe
decided bythesupervisory authority and
5percentoftheCompany 'streaties to
African Reinsurance Co.
(4) Qualified non-Egyptian directors are
allowed forafiveyearterm andmaybe
renewed. Their appointment andrenewal
issubject totheapproval ofthe
Supervisory Authority.
- Anon-Egyptian director must have at
least twoEgyptian understudies.(4) NoneS/FIN/W/12/Add.24/Rev.1
Page8Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2. Non-life insurance (1) Unbound
(2) None(1) Unbound
(2) None
(3) Foreign andjoint venture companies are
allowed onlytocarry onbusiness infree
zones, provided thattheir activities shall
beconfined tothetransactions carried out
inconvertible currencies.
- Nomaximum limits required onthe
foreign shareholding infreezones.
- Economic needs testshall apply tothe
inland commercial presence (other thanin
freezones) according tothecriteria as
stipulated inthehorizontal section.
- Relaxation ofeconomic needs testshall be
in2002 fornon-life business.(3) NoneS/FIN/W/12/Add.24/Rev.1
Page9Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
- Foreign capital equity shall notexceed
49percentofthetotalcapital required
forthecompany (other thaninfreezones)
upto31December 2002.
- Asof1January 2003, foreign capital
equity shall beupto51percentofthe
total capital required forthecompany
(other thaninfreezones).
- Foreign insurance Companies branches
andagencies arenotallowed.
- Legal cessions ofthetotaltransactions
must beceded toEgyptian Reinsurance
Co.according tothepercentages tobe
decided bythesupervisory authority and
5percentoftheCompany 'streaties to
African Reinsurance Co.
(4) Qualified non-Egyptian directors are
allowed forafiveyearterm andmaybe
renewed. Their appointment andrenewal
issubject totheapproval ofthe
Supervisory Authority.(4) None
- Anon-Egyptian director must have at
least twoEgyptian understudies.S/FIN/W/12/Add.24/Rev.1
Page10Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
3. Reinsurance and
retrocession(1) None
(2) None
(3) Foreign andjoint venture companies are
allowed onlytocarry onbusiness infree
zones, provided thattheir activities shall
beconfined tothetransactions carried out
inconvertible currencies.(1) None
(2) None
(3) None
- Nomaximum limits required onthe
foreign shareholding infreezones or
inland.
- Foreign reinsurance companies branches
andagencies arenotallowed.
- Insurance andreinsurance companies are
notallowed todealwithreinsurers not
listed inthesupervisory authority list.
- Five percentofthecompany 'streaties
must beceded toAfrican Reinsurance Co.
(4) None (4) NoneS/FIN/W/12/Add.24/Rev.1
Page11Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4. Auxiliary services other
thanintermediation:
a. Actuarial services (1) Unbound
(2) Unbound(1) Unbound
(2) Unbound
(3) Foreign service supplier must be
authorized toperform thisprofession from
acompetent authority inhishome country
andregistered attheEgyptian register for
thatpurpose.
(4) None(3) None
(4) None
b. Consultancy (risk
assessment andrisk
management only)(1) None
(2) None
(3) Foreign service supplier must be
authorized toperform thisprofession from
acompetent authority inhishome country
andregistered attheEgyptian register for
thatpurpose.
(4) None(1) None
(2) None
(3) None
(4) NoneS/FIN/W/12/Add.24/Rev.1
Page12Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
c. Loss assessment (1) Unbound
(2) Unbound
(3) Foreign service supplier must be
authorized toperform thisprofession from
acompetent authority inhishome country
andregistered attheEgyptian register for
thatpurpose.
(4) None(1) Unbound
(2) Unbound
(3) None
(4) None
d. Liaison offices (1) None
(2) None
(3) Commercial presence isbound onlyfor
public relations andmarket research.
(4) None(1) None
(2) None
(3) None
(4) None
5. Intermediation (1) Bound onlyforlifeinsurance and
reinsurance services.
(2) Bound onlyforlifeinsurance and
reinsurance services.
(3) Unbound
(4) Unbound(1) None
(2) None
(3) Unbound
(4) UnboundS/FIN/W/12/Add.24/Rev.1
Page13Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
OTHER FINANCIAL SERVICES
A. SECURITIES
1. Underwriting (1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) None
2. Brokerage (1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) None
3. Trading insecurities
(Buy andSellby
individual orinstitution
onthestock exchange)(1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) NoneS/FIN/W/12/Add.24/Rev.1
Page14Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4. Clearing andsettlement (1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) None
5. Marketing andmarket
promotion(1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) None
6. Portfolio andinvestment
management(1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) None
7. Establishment of
collective investment
funds(1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) NoneS/FIN/W/12/Add.24/Rev.1
Page15Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
8. Venture capital (1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) None
B. FINANCIAL
LEASING(1) None
(2) None
(3) None
(4) None(1) None
(2) None
(3) None
(4) None