GAFI Unveils Updated Framework For Financial Valuation, Due Diligence

(MENAFN- Daily News Egypt) The General Authority for Investment and Free Zones (GAFI) has officially approved an updated technical and regulatory framework for corporate valuation and pre-investment financial due diligence. This move is part of Egypt's broader efforts to improve the business climate and offer more efficient, transparent services to investors.

The announcement followed the final meeting of the technical committee overseeing the review and update of the framework, chaired by GAFI CEO Hossam Heiba. The session also included key participants such as Dalia El-Hawary, Deputy CEO for Institutional Development, Research, and Economic Performance, along with experts from prominent Egyptian and international audit firms and relevant authorities.

The committee focused on streamlining accounting standards, improving procedures for mergers, demergers, and corporate restructurings, and reviewing the technical treatment of companies' financial frameworks. Additionally, the committee developed a comprehensive approach for pre-investment financial reviews, aligning with international best practices while addressing practical challenges and proposing measures to support Egypt's digital transformation.

CEO Hossam Heiba highlighted that the updated framework is crucial for strengthening Egypt's investment environment. It will foster greater transparency, improve technical accuracy, and better meet investor needs. He also emphasized that GAFI's ongoing modernization efforts aim to digitize services and enhance the quality of services in line with global standards and Egypt's investment priorities.

“We will closely monitor the implementation of these reforms, gather stakeholder feedback, and continue making improvements,” said Heiba, stressing the importance of regular follow-up meetings to track progress and achieve long-term institutional impact.

El-Hawary added that the committee used an in-depth analytical approach, examining existing models and international case studies to develop actionable recommendations for improving valuation and financial review processes. She emphasized that the new framework will boost the reliability and consistency of valuation results across GAFI's technical departments.

As part of its digital transformation initiative, GAFI also introduced a new online platform for financial review services. The platform allows investors to submit requests, track their status, and receive real-time updates and notifications, marking a significant shift toward greater digital integration and efficiency. This initiative aims to reduce review times, enhance transparency, and improve communication with investors.

GAFI stated that the updated framework and digital platform are part of a wider series of reforms designed to improve Egypt's competitiveness, attract both domestic and foreign investment, and strengthen investor confidence. The authority is committed to closely monitoring these reforms to ensure their successful implementation and positive impact on the business community.

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