SECTIONS
African Capital Markets: Challenges and Opportunities

EGYPT

AUTHORS

EGX R&D Division


Gehad Hussein
Managing Editor, Business Forward 


Mohamed Selim Tantawy
Deputy Manager, R&D, Egyptian Exchange

As a result of Egypt’s economic reforms, its sovereign ratings have improved, with Moody’s, Fitch, and Standard & Poor’s each upgrading the country since 2013. Key economic indicators are pointing upward too: Real GDP growth was 5.3% in 2017–2018, and headline inflation fell to 12.7% in January 2019. 
The reforms have steadied the nerve of foreign investors: Net foreign purchases enjoyed their second-highest year in 2017, and foreign investors’ participation in IPOs doubled between 2016 and 2018. 
Liquidity in financial markets has been improved through an IPO program, a new market maker mechanism, and extension of the intraday trading from 104 to 160 stocks. The Egyptian Stock Exchange (EGX) has also allowed greater use of stock splits and margin trading for exchange-traded funds (ETFs). 
The measures have helped gain international recognition for the EGX. It holds the chair of the Arab Federation of Exchanges and of the Working Committee of the Federation of Euro-Asian Stock Exchanges and is a founding member of the Sustainable Stock Exchanges initiative.
To further drive trading, the EGX plans to allow new products, such as financial and commodity derivatives, to be listed. It is also in the process of launching a fixed-income trading platform and instituting software development support for its members.

EGYPT

Do you know....?

 

Question: Which location in Egypt is NOT the home of one of its stock exchanges? 

YOU'RE RIGHT!

Answer: Giza. The Alexandria Stock Exchange was established in 1898, and the Cairo Stock Exchange was established in 1904. Although Giza is the third-largest city in Egypt, it is not home to any stock exchange.

VERY CLOSE!

Answer: Giza. The Alexandria Stock Exchange was established in 1898, and the Cairo Stock Exchange was established in 1904. Although Giza is the third-largest city in Egypt, it is not home to any stock exchange.