Egyptian Banks Invest in Education to Build Future Workforce, Says Aboul Fotouh

Investing in human capital is becoming more and more important with today's fast-paced economic and technological changes. Developing our education system isn't just a social goal anymore; it's a key driver for boosting productivity and making our economy more competitive. Yahya Aboul Fotouh, CEO of Housing & Development Bank, highlighted this point, emphasizing that the banking sector sees education as a long-term investment in the economy's future, not just funding a service sector. He shared these thoughts during his participation in the opening session of the fifth Investment in Education Summit. Aboul Fotouh explained that banks' support for education investment aligns perfectly with Egypt's national vision, which prioritizes developing the education system and building human potential as top goals for sustainable development. He firmly stated that spending on education is a direct investment in human capital. He also noted that the state continues to increase its education budget. Currently, spending exceeds 2.5% of the GDP, but it's still below the 4% to 6% recommended by UNESCO (the United Nations Educational, Scientific and Cultural Organization). Aboul Fotouh added that reaching these spending levels is essential to improve education quality and boost the efficiency of the entire system. This will help prepare a workforce with the skills and knowledge that the Egyptian job market and economy will need in the coming years.

Investing in People Delivers Sustainable Returns

Aboul Fotouh clarified that investing in education doesn't just improve educational services; it also boosts national income. He pointed to the nearly $40 billion in remittances from Egyptians working abroad as a great example of the economic returns generated by investing in human talent. He added that these remittances reflect the contributions of millions of Egyptians working overseas in various fields, including engineers, doctors, technicians, and IT specialists, among others. He stressed that investing in human resources brings sustainable economic returns for the country. He also noted that this type of investment has a relatively low cost compared to some other productive sectors. It doesn't rely on importing raw materials like manufacturing, nor does it require massive infrastructure and marketing investments like the tourism sector. Instead, it provides continuous economic resources through skilled individuals who can work and produce both inside and outside Egypt.

Funding Education and Preparing Future Talent

The CEO of Housing & Development Bank confirmed that the banking sector actively participates in financing education projects at all levels. This includes funding the construction of schools, universities, and applied technology schools, as well as supporting investors looking to expand in this sector. He explained that banks' role isn't limited to direct funding. It also extends to indirectly supporting educational investments, which helps increase the capacity of educational institutions and improve the quality of services offered to students. He pointed out that the state's requirement for new universities to partner with international universities that have high global rankings is an important step. This helps transfer global academic expertise and enhances the quality of higher education in Egypt. Aboul Fotouh added that banks also support the education sector through their Corporate Social Responsibility (CSR) programs. This involves contributing to applied technology schools and universities, and assisting students who can't afford tuition fees, thereby increasing access to education. He explained that banking institutions have supported several universities and educational institutions, including Zewail University and Nile University, alongside initiatives aimed at empowering outstanding students to complete their education without financial difficulties holding them back. Aboul Fotouh emphasized that rapid developments in artificial intelligence, digital transformation, and digitalization make it essential to prepare a workforce with modern technical skills, capable of keeping up with the continuous changes in the job market. He concluded by reiterating that the banking sector considers investment in education a direct investment in the economy's future. This is because financial institutions need qualified professionals with digital and technological skills. He stressed that banks will continue to support the education sector through funding, investment, and CSR programs, helping to build generations better equipped to support the national economy, boost Egypt's competitiveness, and achieve sustainable development goals.