Policymakers plan to roll out a package of stock market incentives next week to boost investment flows through the EGX, a senior government source told EnterpriseAM. The measures will be coordinated with the Financial Regulatory Authority and the ministries of finance and investment. The government expects the package to increase EGX listings, attract more investment, and ramp up overall market capitalization.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

What can we expect? The package will scrap the previously planned capital gains taxes, replace them with a unified 0.125% stamp duty for all investors, and include incentives for unlisted shares.

To encourage IPOs, gains from new listings will be tax-exempt, and amendments to the Investment Law will link exchange listings to investment incentives by the General Authority for Investment and Freezones.

REMEMBER- Finance Minister Ahmed Kouchouk previously said the Madbouly government is looking into offering fresh incentives for large-scale IPOs on the EGX in a bid to boost market activity.

Other measures include adding gold funds to the list of tax-exempt investments, simplifying regulations to attract companies to the main index, and stimulating off-floor markets.

IN CONTEXT- The government is preparing to boost liquidity on the EGX ahead of the next phase of its privatization program, which is being ramped up to include 50state-owned companies across 14 sectors. The revamped program will also focus on ramping up private-sector participation through minority EGX listings rather than mainly strategic sales.

Tags: