Mohamed Omran: EGX Seeks to Become Regional Center for African, MENA Bourses
Dr Mohamed Omran, Chairman of the Egyptian Exchange, has asserted that the EGX management wants to make the Egyptian market the regional center for the African and Middle Eastern stock markets within the coming period.
He added that the EGX is planning to do this by communicating strongly with the different markets of Africa and MENA, linking up with some markets, after the signing of the EGX’s joint trading memorandum of understanding with Istanbul Stock Market (ISM). The EGX’s plan also includes exchanging the expertise with the regional market in an effective way by holding more conferences.
The EGX says that it is going to hold a workshop with the ISM in December, in order to deal with the final stages, before the connection between the two stock markets actually comes into effect, Omran said.
He added that the main goal of this connection is to give Egyptian listed companies the opportunity to appear on the ISM’s trading screens and vice versa. This will help attract investors to the Egyptian market, as well as facilitating the trading process and the transfer of capital.
As for the African market, Omran said that EGX has a long-term plan to be implemented over three to five years. The plan includes the establishment of an IT company to be used as an investment arm for all African stock markets, replacing the different trading systems used by these markets, thereby reducing their costs.
EGX regards the African Securities Exchanges Association (ASEA) Conference an opportunity to explain to the delegates from African stock markets that Egypt’s economy has started to recover. Some Arab and Asian investors and investment banks are expected to attend the conference.
The African stock markets are promising and attractive, as they offer many investment opportunities and natural resources to support most investments.
Omran expects that the African markets will achieve much success in the upcoming period, as they have made fewer losses in recent years than other stock markets.
The Egyptian companies have a great opportunity to secure high positions on the FTSE index for Africa, when it comes into effect, due to prestige and the quality of the investments of these companies.
As for setting up a unified African stock market, Omran said there are many challenges hindering its implementation, such as the difference in the trading systems and rules of the African stock markets.
Lack of international experience in setting up a unified stock market is also a problem, he noted, adding that the African stock markets have many other priorities just now.
