In a challenging year for economies across the region, Egypt’s capital market reform continued apace. Short-term measures in response to the economic effects of the Covid-19 pandemic joined a series of reforms aimed at establishing the bourse as a safer and more transparent destination for domestic and international investors. While market turbulence is expected to persist throughout much of 2020 and into 2021, longer-term growth in activity is underpinned by the country’s strong economic…
From The Report: Egypt 2020
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Despite uncertainty for economies across the region, Egypt’s capital market reform continued apace. Short-term measures implemented in response to the economic effects of Covid-19 joined a series of reforms aimed at establishing the Egyptian Exchange (EGX) as a safer and more transparent destination for investors. While challenging market conditions have reduced the prospects of initial public offering (IPO) activity in 2020, the issuance of non-state IPOs is expected to pick up again as the economy recovers. More IPO momentum may also emerge from Egypt’s rapidly developing private equity and venture capital sphere, as well as the prospect of military companies being listed on the exchange. Although the performance of the EGX is inextricably linked to that of the economy, and the short-term outlook remains uncertain, longer-term prospects for the market are strong – a local investment firm expects Egypt’s market capitalisation to increase from 15% of GDP in 2019 to 20% in 2024. This chapter contains interviews with Mohamed Farid Saleh, Chairman, EGX; and Hussein Choucri, Chairman and Managing Director, HC Securities & Investment.