Egypt’s PM directs faster capital market reforms, state listings
Prime Minister Moustafa Madbouly on Sunday called for accelerating capital market reforms and expediting the listing of state-owned companies on the Egyptian Exchange (EGX), as the government seeks to deepen markets and attract investment.
Madbouly made the remarks during a meeting with Financial Regulatory Authority (FRA) Chairman Islam Azzam and EGX Chairman Omar Radwan, following the recent appointment of a new head of the bourse.
The prime minister said the government is committed to developing Egypt’s capital markets, strengthening stability, and protecting participants in non-banking financial activities, highlighting their role in boosting investment and expanding both local and foreign private sector participation.
He directed officials to fast-track draft laws regulating the capital market and emphasised the need to accelerate the listing of state-owned companies to maximise returns on public assets. He also reviewed the status of companies already listed and those being prepared for flotation.
Madbouly called for expanding financial instruments and enhancing coordination between regulators and market institutions to develop digital infrastructure, improve transparency, and support informed investment decisions.
He also pointed to improving market indicators. Daily trading volumes have exceeded 12 billion Egyptian pounds, while market capitalisation has surpassed 3.6 trillion pounds, a record high.
Azzam said the FRA is working to upgrade regulatory frameworks in line with international best practices across non-banking financial sectors, including capital markets, insurance, and finance.
He added that efforts are underway to expand financial products to boost liquidity and support broader economic activity.
Azzam highlighted steps to develop the derivatives market, including the launch of futures contracts on the EGX30 index and plans to introduce stock futures and options trading. He also noted efforts to implement market-making mechanisms and finalise short-selling systems by connecting brokerage firms with Misr for Central Clearing, Depository, and Registry (MCDR).
He stressed the importance of coordination between the FRA and the EGX, alongside increased investor awareness campaigns to deepen the market, enhance confidence, and boost competition, particularly as companies listed on a temporary basis move towards final offerings.
“The Egyptian Exchange has seen significant improvement in performance, and we are working to sustain this momentum,” Azzam said.
Radwan said index futures have already been introduced, with stock futures and options to follow, offering broader opportunities for investors.
He added that the exchange is working to enhance transparency and market integrity through financial and sustainable technologies, aiming to increase the number of listed companies and attract more investors.
Radwan said the EGX is targeting the listing of large companies to strengthen its regional competitiveness, supported by improvements in the trading environment, increased market depth, and new incentives, alongside efforts to enhance operational efficiency.
He also highlighted plans to boost investor awareness and promote the exchange across media platforms, noting a rise in participation, particularly among younger investors.
The meeting also reviewed plans to expand private sector participation and attract new listings from both private and state-owned firms, alongside efforts to complete final offerings for companies currently listed on a temporary basis.
Attribution: Amwal Al Ghad English