Egypt’s prime minister continues promotional efforts to attract more investment to the capital market
Cairo – Mubasher: Prime Minister Mostafa Madbouly continued, in a meeting held yesterday evening, Tuesday, efforts to promote and attract more investments to the Egyptian capital market, in the presence of Hassan Abdullah, Governor of the Central Bank of Egypt, Hala Al-Saeed, Minister of Planning and Economic of Development, and Mohamed Moait, Minister of Finance, Mohamed Farid, Chairman of the Board of Directors of the Main Authority for Financial Supervision, and Ramy El Dokani, Chairman of the Egyptian Stock Exchange.
During the meeting, Mohamed Farid, Chairman of the Board of Directors of the Financial Regulatory Authority, reviewed the most prominent decisions and measures taken by the Financial Regulatory Authority since he was given the responsibility last August, be it measures that contribute to the revitalization of the Egyptian Stock Exchange in particular, or non-banking financial activities Generally, according to the press release.
With regard to the efforts made to develop and revitalize the performance of the Egyptian Stock Exchange, Mohamed Farid listed a number of measures that have been taken, including the approval of additional changes to the listing rules to facilitate the procedures in implementing the recommendations of the Economic Conference; Including facilitating the procedures and requirements for the acquisition of registered companies instead of unregistered companies in order to enhance the growth of companies through the capital market and achieve their financial and operational goals..
Farid explained that the executive rules were adopted in order to settle transactions made with bonds of companies listed on the stock exchange in the same trading session, in order to reduce bond trading costs and activate the secondary bond market. In order to maintain market stability and protect bona fide investors.
He referred to the Prime Minister’s decision to amend certain provisions of the executive regulations of the Capital Market Act in order to facilitate the work of investment funds and support efforts to achieve sustainable development goals by organizing the process of issuing different types of sustainability bonds that are in line with international trends..
He added that talks were held with the Minister of State for Immigration and Affairs of Egyptians Abroad, to increase investment opportunities for Egyptians abroad on the stock market, as part of the government’s efforts to raise the level of awareness and financial knowledge of Egyptians abroad on how to invest and save. through the stock exchange and benefit from government services, including insurance and other financial activities..
Regarding the measures taken in the context of promoting a number of non-banking financial activities, Farid explained that the first license for performing microfinance activities, according to Islamic financing formulas, was issued as part of the Administration’s efforts to maximize the development effect. of all its financial activities and services to support economic growth Community dialogue with all professional associations and federations to advise on how to develop non-banking financial markets within the Competent Authority which emphasizes the importance of the principle of partnership for development and stability and the achievement of sector objectives to play a greater role in to support the growth of the national economy.
He added that the issuance of securitization bonds worth half a billion pounds has been approved for one of the consumer finance portfolios as part of the government’s efforts to diversify financial solutions that support economic activity. And the potential of the non-banking financial sector to provide large-scale financial solutions that support economic growth.
During the meeting, Rami El Dokani, Chairman of the Board of Directors of the Egyptian Stock Exchange, referred to the growth of the main index EGX30 by 32.8% since the beginning of August; Accompanied by an increase in average daily turnover to £1.6 billion EGX70 increased by 30% in the same period.
He added that the decision to liberalize the exchange rate and the announcement of an expert-level agreement with the International Monetary Fund led to an increase in average daily trading during the month following the decision, pointing out that the listed stocks have a high profitability rating with great potential for growth..
Al-Dokani reviewed the results of the investment promotion tours of the Egyptian Stock Exchange, and the first promotion tour was held in the period from October 18 to October 21, 2022 in Abu Dhabi and Dubai, since the purpose of the visit was to meet the largest number of investors and investment funds and ask for their views on the market, emphasizing that promotional trips will be intensified during the next phase..
He also touched on efforts to coordinate with government bodies dealing with the government offer program, indicating that new offers will lead to an increase in liquidity rates and attractiveness of the market for investors, as well as achieving the highest degree of stability for the market, emphasizing the importance of increasing institutional investment flows towards stocks that are listed on the stock exchange..
He reviewed efforts to activate and reactivate trading mechanisms to increase investors’ ability to hedge investment risks, as well as efforts to make the stock market a preferred destination for individual investments. The main trading company for carbon certificates on the African continent.
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