Egypt’s PM Reviews EGX Development Plans, Eyes Mega IPOs and Potential Corporatization of the Bourse
Prime Minister Dr. Mostafa Madbouly held a high-level meeting today to review a series of strategic proposals aimed at enhancing the performance of the Egyptian Exchange (EGX) and evaluating the market's recent milestones.
The meeting was attended by Dr. Mohamed Farid Saleh, Minister of Investment and Foreign Trade; Dr. Islam Azzam, Chairman of the Financial Regulatory Authority (FRA); and Omar Radwan, Chairman of the Egyptian Exchange.
Preparing Mega Entities for New IPOs
At the outset, the Prime Minister reaffirmed the government’s strong commitment to developing the Egyptian capital market. He emphasized the need to ensure market stability and protect participants across various non-banking financial activities, highlighting the sector's vital role in bolstering the national economy by driving investment and expanding local and foreign private sector participation.
PM Madbouly lauded the recent positive indicators witnessed by the EGX, specifically noting two major market milestones:
Daily Trading Volume: Surged to reach EGP 15 billion.
Market Capitalization: Exceeded the EGP 4 trillion mark.
The Minister of Investment outlined key strategies currently under study to further elevate the bourse's performance. The discussions heavily focused on the government's Initial Public Offering (IPO) program and initiatives to encourage private-sector listings. A primary objective is to prepare massive entities—whether state-owned or private—for market debuts, enabling them to capitalize on the new tax incentives associated with EGX listings and trading.
Legislative Amendments and Tax Incentives
The meeting also addressed proposed legislative amendments to the Capital Market Law No. 95 of 1992 and its executive regulations. Officials underscored ongoing efforts to prominently highlight the tax advantages and financial incentives linked to securities trading on the EGX to attract more liquidity.
Transforming EGX into a Joint-Stock Company
A pivotal topic of discussion was the future roadmap for the Egyptian Exchange. Key structural and operational upgrades reviewed include:
Corporatization: Plans to transform the EGX into a joint-stock company, exploring the potential of eventually listing it for public trading.
Technological Infrastructure: The latest updates on the modernization of trading and market surveillance systems.
Market Mechanisms: The implementation and enhancement of advanced trading tools, including short selling, derivatives, and market-making activities.
Encouraging Insurance Fund Investments
Finally, the meeting emphasized the strategic importance of encouraging private insurance funds to allocate their designated investment quotas into equities and EGX-listed mutual funds. Furthermore, the officials discussed eliminating regulatory barriers to facilitate the establishment of new private insurance funds, aiming to serve a broader base of investors and inject additional institutional liquidity into the market.