The Egyptian Exchange (EGX), the General Authority for Investment and Free Zones (GAFI), and the Financial Regulatory Authority (FRA) all emphasized their commitment to driving economic growth and development at the eighth Annual Capital Markets Summit, held Monday under the theme “Structural Reforms… Sustainable Development.”
Ahmed El Sheikh, Chairperson of the EGX, outlined the Exchange’s strategy for 2024, focusing on fostering tradable securities. He highlighted the importance of revising market segmentation and streamlining listing requirements. The new system, based on a single percentile index, categorizes companies based on their activity levels. Additionally, the EGX streamlined customer registration procedures and addressed concerns from foreign investors regarding duplicate document requests.
Furthermore, El Sheikh announced the launch of a new “Development Market” catering to companies seeking direct listing or facing compulsory delisting. This market will have tailored trading rules and specific controls to ensure its smooth operation. He also emphasized the importance of investor relations training and collaboration with the FRA to enhance information transparency.
Hossam Heiba, CEO of GAFI, emphasized the urgency of attracting new investments, both local and foreign, to fuel economic growth. He highlighted GAFI’s role in facilitating investments through legislative amendments, providing incentives, and promoting exports.
Heiba outlined key reforms undertaken by GAFI, including:
Extending the deadline for investment incentives to 2029, offering tax breaks for various sectors, including a cash incentive for industrial projects.
Moreover, reforms include launching a digital platform for investment procedures, including the application for the “golden license,” which grants expedited approvals. Also, the establishment of a dedicated unit to address investor concerns and facilitate problem-solving.
Heiba also revealed that net foreign direct investments in Egypt reached $10bn in the 2022-2023 fiscal year, with a projected target of $12bn for the current fiscal year.
Mohamed Farid, Chairperson of the FRA, acknowledged the challenges in developing the financial market but emphasized the collaborative efforts underway with the EGX to address them. He highlighted the importance of investor protection and transparency through comprehensive disclosure practices.
Farid also acknowledged the growing role of startups and green initiatives within the market. He discussed the FRA’s efforts to prepare for a carbon market in Egypt, including:
Defining the classification of carbon certificates as trading instruments.
Establishing regulations for verification and certification bodies.
Issuing guidelines for registering green projects and carbon certificate trading.
Additionally, the FRA implemented revised evaluation criteria for emerging companies and prioritized the development of robust technological infrastructure, including the e-KYC (Know Your Customer) license.
The summit provided a platform for key stakeholders in the Egyptian financial sector to discuss critical issues and outline their strategies for promoting sustainable economic development through structural reforms and collaborative efforts. It is organized by Media Avenue.
