CAIRO: In an important move Thursday, the Egyptian Capital Markets Authority and the Egyptian Stock Exchange approved a deal that will give Egyptian investors significant access to one of the region’s most critical markets.
With the purchase of Al Salam Brokerage by the Abu Dhabi Financial Services Company (ADFS), a subsidiary of the National Bank of Abu Dhabi (NBAD), it was decided that the deal would give investors a platform to more easily trade stocks between Egypt and the UAE.
The intent to purchase Al Salam was originally announced last week.
Upon finalization of the deal, investors will have the capacity to conduct trades through any of NBAD’s branches in either country.
This new agreement will allow investors to deal with multiple currencies and to execute larger trades more efficiently.
It is viewed as an important development for two countries which already have deep economic ties.
Though the new streamlined trading model is only just coming to light, the announcement of the acquisition last week served to reiterate the Gulf’s commitment to heavy investment in Egypt.
“The acquisition comes in line with NBAD Group s Strategic expansion plans regionally and internationally, and as a step to show the bank s commitment and confidence in the in the Egyptian market. It also aims to diversify the NBAD s products and expanding the customer base, said Khaled Abdel Rahman, ADFS general manager.
“The selection of Al Salam company was based their long existence in the Egyptian market and its expertise in stock brokerage since 1994, he added.
“Final details of the transaction are being finalized in order to take necessary actions for execution, and will be announced in due course, ADFS general manager added.
