To achieve economic development, develop the capital market and enhance the registration of government companies in Egypt

Financial markets – such asThe Egyptian Capital Market – have become one of the main tools that countries rely on to promote sustainable economic growth and expand investment opportunities. Because the presence of an efficient and transparent financial market contributes to directing savings towards productive activities, and supports companies’ ability to expand and innovate, which is consistent with the directions of the 2030 Sustainable Development Agenda.

In this context, efforts to develop the Egyptian capital market and enhance the registration of government companies represent a strategic step towards deepening the role of financial markets within the national economy. Therefore, in the following lines, we highlight the most prominent Egyptian government moves in this field. So keep reading.

Developing the Egyptian Capital Market

The Egyptian government continues its moves to enhance the efficiency of the financial market; Dr. Mostafa Madbouly, “Prime Minister,” held a meeting with Dr. Islam Azzam, “President of the Financial Regulatory Authority,” and Mr. Omar Radwan, “President of the Egyptian Stock Exchange.”

In this meeting, Dr. Mostafa Madbouly, “Prime Minister,” expressed his aspiration for close cooperation between the Authority and the Stock Exchange, in a way that contributes to achieving the state’s goals related to developing the capital market, and enhancing its ability to attract investments within the framework of the Sustainable Development Goals (SDGs).

In this context, the Prime Minister stressed that the government attaches great importance to enhancing the stability of financial markets and regulating non-banking financial activities, stressing the vital role that the capital market plays in increasing investment rates and supporting the participation of the local and foreign private sector in the economy.

Developing the digital banking infrastructure

The Prime Minister also stressed the need to expand the use of modern financial tools within the capital market, while strengthening coordination between the concerned authorities. In order to develop the digital infrastructure of the market. This trend aims to raise levels of transparency and provide advanced analysis tools that help all categories of investors make more accurate investment decisions.

On the other hand, Dr. Mostafa Madbouly discussed the positive indicators witnessed by the Egyptian Stock Exchange in the recent period, as the average daily trading exceeded 12 billion pounds, while the market value of listed shares rose to more than 3.6 trillion pounds, which is the highest historical level recorded by the Egyptian market!

Accelerating capital market legislation

During the meeting, the Prime Minister directed the rapid completion of the preparation of draft laws that will regulate the financial market, stressing the importance of updating the legislative environment to keep pace with developments in global financial markets, with the need to accelerate the registration of state-owned companies on the Egyptian Stock Exchange.

All of this comes within the framework of the state’s strategy to maximize the use of its assets and enhance the efficiency of public companies’ management, while reviewing the position of companies that have already been registered and those being prepared for launch in the Egyptian market.

New Investment Tools

For his part, Dr. Islam Azzam, Chairman of the Financial Supervisory Authority, confirmed that the Authority is working to develop regulatory policies and controls, and this is in line with international best practices in the non-banking financial sectors, including the capital market, insurance, and various financing activities.

Dr. Islam Azzam also referred to the progress achieved in launching financial derivatives markets, explaining that the “Futures Market” on the EGX30 index had been launched, with work being done to enable trading of “Option Contracts” during the next phase.

A plan to enhance the competitiveness of the Egyptian Stock Exchange

In turn, Mr. Omar Radwan, Chairman of the Egyptian Stock Exchange, explained that the introduction of futures contracts in the Egyptian Stock Exchange indices represents an important and sustainable step towards developing the market, noting that the next stage will witness the introduction of futures contracts on stocks, providing various investment tools for investors.

In a related context, Mr. Omar Radwan stated that the Egyptian Stock Exchange is working to enhance market integrity and transparency of transactions, by employing modern financial technology. This helps increase the number of registered companies and enhances the attractiveness of the market to investors.

In conclusion, it is clear from the above that Egypt is making rapid moves towards developing the capital market. The government is aware of the important role of financial markets in promoting economic growth and directing savings towards productive investment. Because deepening the market and expanding financial instruments contributes to attracting investments and supports the economy’s ability to absorb global shocks and achieve sustainable growth.

With the acceleration of legislative reforms and the expansion of the base of registered companies;The Earth Guards Foundationsees that the Egyptian Stock Exchange is an important main platform that can promote the transition towards a more sustainable and competitive economy, an economy capable of attracting local and international capital in accordance with the path of Sustainable Development Goals (SDGs).