Scientific research necessary for Egyptian development

The Egyptian stock market must take an active role in the financing of scientific research by encouraging member companies to fund scientific research projects, said Mohsen Adel, a financial analyst. He also urged specialized companies to finance scientific research with shares in their Initial Public Offering.

When compared to international rates of investment, Egyptian spending on research programs is weak and presents a main obstacle to scientific development, Adel said. He added that the only path to scientific breakthroughs is through increased national programs that incentivize private sector investment in scientific research.

Scientific research investment in the Arab states is financed largely by the state – between 85 and 90 percent – while private companies in the EU contribute roughly 45 to 50 percent of the total investment in science at research centers and universities.

Adel added that scientific research investment constitutes only one percent of Egypt’s total GDP – a percentage below the global average.

A new idea designed to both encourage scientific research and increase investment is in the works, said Adel. The idea, which is also hoped to have positive economic effects, involves specialized companies dedicating a certain number of shares in their IPOs exclusively to scientific research projects, adding that such guaranteed funds often spell success for international scientific centers.

The idea can be implemented now, Adel claims, urging investors to prioritize shares for development in electronics, marine sciences, environmental and information technologies, space sciences, agricultural technology and efficiency in manufacturing. Such investments will achieve marked economic revenue by the third year, he claims.