The Exchange Traded Funds (ETFs) in Egypt could be open for business within 6 weeks from now, stock exchange chairman Mohamed Omran said on Monday.
Through the ETFs, Egypt is looking forward to increasing liquidity and attracting new investors onto the local market.
Last March, Egypt’s market watchdog ratified the regulations governing the exchange-traded funds (ETFs) alongside the margin trading.
Exchange traded funds serve as open investment funds which follow the movement of specific indicators, listing and trading their supplementary documents on the stock market as shares and bonds. They allow investors to gain a broad exposure to entire stock markets of different countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing.
Egypt’s stock exchange has been suffering from low rates of liquidity since the worldwide economic recession of 2008, the effects of which were exacerbated after the outbreak of the 25 January Revolution.