Listing state-owned companies in EGX, privatisation programme would boost capital market liquidity: FRA chairman

Doaa A.Moneim , Sunday 31 Jul 2022

Listing state-owned companies in Egypt’s Exchange (EGX) and implementing the privatisation programme would stimulate Egypt’s capital market and boost its liquidity, Chairman of Financial Regulatory Authority Mohamed Omran said on Sunday.

Mohamed Omran
Chairman of Financial Regulatory Authority Mohamed Omran.Photo: Al-Ahram


Omran made his statements on the sidelines of the community dialogue launched by the FRA to discuss the improvement strategy of the Egyptian capital market (2022-2026).

The strategy aims to boost Egypt’s Exchange (EGX) and the role it plays in attracting new investments.

It also intends to attract new companies to be listed in the EGX as well as expand the ownership base of state-owned companies.

During the dialogue session, Omran said that FRA is about to issue future securitisation bonds worth EGP 800 million and to support such capital market tools going forward as to reach a total value of EGP 80 billion, Omran said.

Moreover, Omran revealed that corporate investments in the local market are estimated at EGP 540 billion, noting that FRA is seeking to increase this value and is currently preparing a study to collect detailed data on the investments in the domestic market.

According to him, corporate investment is important as it pumps the required liquidity for the capital market that would enhance its efficiency.

Egypt’s cabinet is currently holding a community dialogue on the State Ownership Policy Document that aims to increase the share of the private sector in the economic activity to 65 percent, up from the current 30 percent, over the next three years.

The policy targets increasing the country’s real GDP growth to between seven and nine percent by increasing public investments by between 25 and 30 percent, thereby creating more job opportunities.

Under the policy, government interference in economic activity, however, will be intensified in sectors that are stagnant, which will lead to creating a more attractive investment climate for investors.

The policy also aims to attain more financial savings, enact financial discipline, and keep the state’s economy resilient against internal and external shocks, as well as boost social protection nets.

The policy offers 80 economic activity to be tapped by private sector totally or in partnership with the government.

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