Egypt’s bourse sees retail investor surge as fintech widens market access – chairman

Egypt’s stock exchange is seeing a sharp rise in retail investors as fintech platforms widen access and regulators push reforms to speed up listings and capital increases, Egyptian Exchange Chairman Omar Radwan said on Monday.

Speaking at a luncheon hosted by the British Egyptian Business Association (BEBA), Radwan said the Egyptian Exchange (EGX) had attracted 25,000 retail investors in 2022, a figure that rose to 300,000 in 2023 and more than 600,000 in the first five months of 2024.

The increase followed the implementation of Egypt’s fintech law, Law No. 5 of 2022, which gave legal recognition to digital signatures and broadened access to stock market participation.

Radwan said the investor base was shifting beyond traditional Cairo-based brokerage networks as digital platforms drew in younger investors across the country.

“This Gen Z cohort, some as young as 15, is entering the market with a sophisticated, AI-driven approach to data,” he said.

The rise in retail demand has highlighted a supply-side challenge, with investor appetite outpacing the number of new listings entering the market, Radwan said.

He urged family-owned and private-sector companies to consider public offerings, adding that the exchange had expanded its infrastructure to support growth, including derivatives, short-selling and futures trading.

The exchange is also working with the Financial Regulatory Authority and the Finance Ministry to revise parts of its regulatory framework, much of which dates back to 1992, to reduce approval times for listings and capital increases from months to days.

The reforms include a task force with the Micro, Small, and Medium Enterprises Development Agency to help smaller firms strengthen governance and prepare for listings.

Radwan said Egypt was studying models, including Singapore, to streamline listing procedures and automate membership processes.

He added that recent currency stabilisation and the central bank’s shift towards a more flexible exchange rate had helped restore foreign investor confidence, with institutional orders gradually returning to the market.