Radwan: The Egyptian financial market witnessed a new
phase of growth supported by economic reform

Kouchouk: Perceiving the financial market as a key driver
of Economic growth and investment financing

Dr. Farid: Working on reshaping the investor’s journey
completely to become easier, faster, and more transparent

Dr. Islam Azzam: The latest amendments are an important
step to support competitiveness of the Egyptian financial market The
Egyptian Exchange hosted at its headquarters downtown a conference announcing a
package for developing the financial market and attracting more investments.

The
conference started by Mr. Omar Radwan, Executive Chairman of the Egyptian
Exchange, and Mr. Mohamed Sabry, Vice Chairman of the Egyptian Exchange,
welcoming Mr. Ahmed Kouchouk, Minister of Finance, Dr. Mohamed Farid, Minister
of Investment and Foreign Trade, and Dr. Islam Azzam, Chairman of Financial
Regulatory Authority, as well as a large number of experts of economy and
financial market. Mr. Omar
Radwan, Executive Chairman of the Egyptian Exchange, emphasized that the Egyptian
Financial market is witnessing a new phase of growth, supported by the economic
and legislative reforms and the ongoing cooperation between the Egyptian
Exchange and the related authorities, contributing to enhance competitiveness
of the market and attracting more investments. Radwan
clarified that the market value of the listed stocks reached about EGP 4.1 trillion,
whereas the daily trading values reached EGP 13 billion. Also the number of new
investors increased since beginning of the year to more than 385 thousand investors,
reflecting growing trust in the Egyptian financial market. Radwan
pointed out that the upcoming stage will witness the development of the technological
infrastructure of the Egyptian Exchange and starting utilization of artificial intelligence
technologies, in addition to collaboration with the Financial Regulatory
Authority to develop the market and introduce new financial products and tools. Also
Radwan confirmed that the new reform and taxes package represent a strong incentive
motivation to increase listing of companies on EGX, encouraging them to expand
and benefit from the taxes privileges, supporting the offering program and
enhancing the role of the financial market in economic financing. ‎
EGX
Executive Chairman concluded his speech highlighting readiness of the market to
welcome more investments, emphasizing that Egypt has all the necessary features
to be an attractive investment destination. He added that EGX will continue to support
the companies seeking to grow and expand through the stock market. During
a discussion session held on the sidelines of the conference, moderated by Mr.
Mohamed Sabry, Vice Chairman of the Egyptian Exchange: Dr. Ahmed Kouchouk,
Minister of Finance, confirmed that everyone will benefit from the new taxes
facilities, noting that it originated from the market, the private sector, and specialists
through “a prolonged dialogues based on trust and partnership”. In
his encouraging messages to investors, Minister of Finance said that we aim to
provide strong support to the Financial market, attract large and influential
companies, and also help companies to expand. He pointed out that investment
incentive of 15% deductions on due taxes for 3 years are to encourage listing
of major companies on EGX.

Kouchouk added that the stamp tax replaced the capital
gains tax to reduce burdens and encourage investment and trading on the
Egyptian Exchange. He clarified that the stamp tax for non-residents is reduced
to 0.5/1000 instead of 1.25/1000 to achieve fairness between “resident” and “non-resident”. Minister
of Finance confirmed his happiness with the achieved results and the
significant increase in the daily trading volumes and values in the Egyptian
Exchange. Also he pointed to the exemption of the market maker activity from the
stamp tax on buying and selling transactions of listed securities to support
this activity. Kouchouk clarified that we perceive the market as a key driver
of the economic growth and investment finance. We aim to simplify taxes
transactions, reduce cost, increase liquidity and attract investors, in
addition to enhancing the ability of the Egyptian Exchange to play its role in
mobilizing savings and financing development. The
Minister of Finance confirmed that the private sector is the main driver of the
economic growth and we aim to maintain the economic stability giving a larger role
for the private sector in the economic activity and investments. He added that we
are working on new incentives package that will boost competitiveness of the
Egyptian economy, emphasizing the state’s commitment to the economic reform and
strengthening attractiveness of the market through structural reform improving
the investment environment and increasing rates of production and exportation of
products and services.
The
minister emphasized that we manage the public finances of the country with a broader
perspective of the Egyptian economy, and that “revenues will come when
investment increases and the private sector expands”. He added that indicators
of Egyptian economy are reassuring due to the implemented reforms, speed of
decision-making, their consistency over the past year and that the private
sector drives growth with investments that increased to reach 60% of the total executed
investments. He also clarified that we noticed a significant improvement in the
industry, tourism, telecommunications, and informational technology sectors,
and that the direct foreign investment exceeded US$13 billion during the period
from March to July 2026. From
his side, Dr. Mohamed Farid, Minister of Investment and Foreign Trade,
confirmed that Egypt is implementing an integrated vision of economic reform
aiming to enhance competitiveness of the national economy and improve
investment environment. He pointed out that the Ministry is working to completely
reshape the investor’s journey to become easier, faster, and more transparent.
This is done through expanding digitalization, simplifying procedures, and
unifying the entities dealing with investors, all of which contributing to reduce
costs of practicing business and boosting attractiveness of the Egyptian market
to new investments. The
minister added that economic entities platform represents a qualitative leap in
providing services to investors through unified electronic window for establishing
companies, obtaining approvals and licenses, and completing government
procedures. He pointed out that the ministry is also completing the project of electronic
connection between General Authority for Investment and Free Zones (GAFI),
Financial Regulatory Authority (FRA), the Egyptian Exchange (EGX), and the Commercial
Registry, to expedite the procedures of capital increase and support expansion
of companies and their ability to obtain finance necessary for growth.

Dr.
Mohamed Farid emphasized that developing the financial market is one of the main
pillars to improve the investment environment, pointing to the importance of
simplifying procedures of listing, offering, and capital increase, as well as
encouraging merging and acquisitions operations, besides comprehensive efforts to
introduce advantages of listing and offering to companies and presenting the opportunities
provided by the financial market to finance expansion and growth. He clarified
that the incentives are part of an integrated system aiming to increase market’s
depth, enhancing its competitiveness and expanding base of companies and investors. Regarding Egypt’s Exportation Initiative, Dr. Farid
clarified that the ministry is implementing an integrated plan aiming to expand
exporters base, increase number of companies capable of reaching foreign
markets, through direct access to industrial and production clusters across various
governorates. We have to introduce the services offered by the ministry’s
affiliated bodies to the companies, in addition to supporting them to meet the technical
requirements and international standards, as well as developing their productive
and marketing capabilities, increasing competitiveness of the Egyptian products
and enhancing their chance to access the global markets. On
the other hand, Dr. Islam Azzam, Chairman of the Financial Regulatory Authority,
said in his speech that the new taxes package represents an important step to enhance
attractiveness of the Egyptian Financial market. At the same time, developing the
investment environment does not depend on taxes incentives only, as it requires
real integration between relevant authorities in procedures and policies,
contributing to improve performance of the market, its investment image, and increase
its ability to attract both local and foreign investments.
Dr. Azzam added that the recent international studies
indicate that simply cutting taxes is no longer enough to attract companies and
investments. It’s essential to have medium and long term policies, in addition
to using diversified incentives to encourage investment in different forms.
This is what the Egyptian government is working to implement through a group of
integrated set of reforms, as the Egyptian economy is no more isolated from the
developments happening in the regional and global markets and the competition
between them. He highlighted the importance of benefiting from international
experiences in putting investment and taxes policies. FRA
Chairman clarified that the new taxes package came after years of coordination
between the Ministry of Finance and the related authorities, including the Financial
Regulatory authority, to solve the practical problems caused by the capital
gains tax and the difficulties of its collection, and postponing its
implementation several times. All this led to launching the new taxes package, which
is the most suitable for long-term investment, in addition to attracting holding
companies and mother companies to the Egyptian market.

Dr.
Islam Azzam praised the new package and its application of a proportional stamp
tax on the total trading of listed securities sell and buy by 0.5/1000 for
buyer and 0.5/1000 for seller. As for same-day transactions, 0.25/1000 for each
of buyer and seller, with exemption of the market makers of this tax to encourage
practicing the activity and provide liquidity. All this done amidst coordination
between FRA and EGX and Misr for Central Clearing Depository and Registry (MCDR)
to take the required procedures to confront any potential speculation. He
also talked about the importance of the investment incentive included in the package
for large companies that list their shares on EGX according to public offering
approved by FRA with a fair value not less than EGP 50 billion, with 15%
deduction of income tax for three years from the date of offering, as per the
specified regulations and conditions. This encourages major companies to benefit
from the financial market as a source of finance and expansion of ownership
base, which accordingly increases market capitalization, trading volumes and
the number of strong companies that impact the main index.