Capital Markets

After a downturn in the wake of the 2011 revolution, the Egyptian Exchange (EGX) has staged an impressive recovery. Having dealt effectively with the fallout from the broader economic uncertainty, the management of the EGX has now turned its attention to deepening the market and widening its investor base. The EGX is relatively diverse compared to its regional peers, with the largest sector in 2013 being construction and materials (21.37%), followed by telecoms (15.7%), banking (14.3%) and financial services (7.29%), among several other significant sectors. Since 2010 investors have also had the option to direct their capital to a range of small- and mid-cap firms that are listed on a separate board, the Nile Stock Exchange (NILEX). The sub-market has a lower capital requirement of $7.1m and more flexible financial history and disclosure rules. While ratings agencies take a more favourable view of the nation’s economic prospects, significant structural reforms are still necessary to stabilise Egypt’s economy in the longer term.

This chapter contains interviews with Mohamed Omran, CEO, Egyptian Exchange (EGX) and Hussein Choucri, Chairman and Managing Director, HC Securities & Investment.