Egypt’s capital markets are demonstrating tangible signs of progress, driven by regulatory and fiscal reforms as well as improved macro fundamentals. This momentum is crucial as Egypt navigates regional competition and reinforces its position as a key market in Africa and the Middle East.

We’re seeing renewed traction for issuers keen to list on the Egyptian Exchange (EGX), with companies like valU (U Consumer Finance), United Bank and Bonyan Real Estate Investments advancing toward public offerings. The market is further bolstered by new rules, like introducing Special Purpose Acquisition Companies (SPACs) and their temporary listing option, as well as improvement in certain other capital market regulations. Investor interest in some of the listed companies is evident, as demonstrated by the recent foreign interest in the Delta Insurance Mandatory Tender Offer (MTO) by Morocco’s Wafa Assurance, signaling active cross-border strategic investments.

The challenge is to strike the right balance of simplifying regulations while safeguarding investors. Key improvements focus on strengthening market confidence through stable, transparent and simplified regulations and fiscal policies. This is particularly important for foreign investors who require a clear exit horizon. The regulators have already made a notable effort in developing the market. Steady and continuous progress in creating more efficiencies from settlement processes to reduced administrative hurdles in repatriation of capital are all tools that would encourage investors. Equally relevant is the promotion of market-making programs to help enhance liquidity, which can be further complemented by stable long-term monetary policies.

The government’s recent discussion around replacing the capital gains tax on listed stock transactions with a fixed stamp duty may represent a critical shift. The shift from a profit-based system to a transaction-based levy may simplify compliance and provide cost predictability. Continuous stability in fiscal and tax policies will naturally boost investor confidence.

Increased competition from regional peers will advance local market development. Key levers that attract issuers and investors, such as ongoing tax and investment reforms that include cash investment incentives for foreign currency-funded projects, present an important path for continued renewed interest and growth in the market. The government’s upgraded growth forecast, expecting the economy to be “nearly” growing at a 5% clip this fiscal year, further supports the narrative that structural reforms are paving the way for a robust and increasingly attractive capital market.

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