CAIRO & ALEXANDRIA STOCK EXCHANGES
Dr. Sameh Y. El-Torgoman
Chairman
We, at CASE, are
planning to focus on
having well-capitalized
brokerage firms,
quality issuers and
well-regulated markets
to ensure that our
markets support
transparency, fairness
and efficiency.
This past year witnessed the undertaking of
major projects at the Cairo and Alexandria
Stock Exchanges (CASE), including the hiring
of a new CEO for the company: Egypt for
Information Dissemination (EGID), a fully owned
subsidiary of CASE. The CEO will focus on
developing and marketing new products as well
as new business opportunities for the
Exchange locally and regionally, launching the
updated version of the CASE website with a
completely new look and content and simplified
search and navigation systems, where users
can find a wealth of information about CASE. In
addition, CASE has strengthened its disclosure
department workforce to play a more crucial
role in providing market participants with timely,
useful and accurate information.
Internationally, the Iraqi War was the most
significant global event in 2002/2003. It
fortunately did not last long and had a minor
negative impact on the MENA region
economies. On the other hand, negative factors
such as rising oil prices and lagging
consumerism and business are still prevalent in
the major economies, i.e. the US, Europe and
Japan. All are waiting to see a US-led global
economic recovery in the first quarter of 2004.
Locally, 2002/2003 witnessed the flotation of
the Egyptian currency and the passing of
several important economic laws by the
Egyptian Parliament, confirming the
HISTORY AND DEVELOPMENT
The Egyptian Stock Exchange is comprised of
two exchanges: the Cairo and Alexandria Stock
Exchanges (CASE), and is governed by the
same board of directors that share the same
trading, clearing and settlement systems. The
Alexandria Stock Exchange was officially
established in 1888 followed by Cairo in 1903.
The two Exchanges were very active in the
1940s, when the Egyptian Stock Exchange
ranked fifth in the world. Nevertheless, the
central planning and socialist policies adopted
in the mid-1950s led to the demise of activity on
the Exchanges, which remained dormant
throughout the period between 1961 and 1992.
government’s seriousness with respect to
reforms and showing a positive impact on the
activity and turnover of the Exchange.
We, at CASE, are planning to focus on having
well-capitalized brokerage firms (members later
with the implementation of our membership
rules), quality issuers and well-regulated
markets to ensure that our markets support
transparency, fairness and efficiency next year.
CASE will work vigorously toward more
corporate disclosure and the strengthening of
corporate governance in Egypt. Furthermore,
we will encourage new listings of attractive
companies both locally and regionally and will
involve ourselves fully in activities for support of
listed companies.
In addition, to encourage more investment in
Egypt, CASE will continue its efforts to enhance
investor education, pledging to maintain a
market that is fair and trustworthy.
Moreover, we aim to secure the standing of the
Egyptian capital market, not only within the
MENA region, but also with world capital
markets. In turn, the US Securities and
Exchange Commission (SEC) approved the
application of CASE to be designated an
offshore securities market, within the meaning
of Rule 902(b), under Regulation S of the
Securities Act of 1933, in April 2003.
FUTURE OUTLOOK
CASE aims to be one of the core financial
centers in the Middle East North Africa (MENA)
region, through the adoption of leading-edge
technology, commitment to continuous
improvement in its rules and regulations, the
products and services it offers, and alliances
forged with international markets. CASE is
striving to strengthen its competitive position by
embracing a strong customer orientation,
offering timely and secure services to investors,
members and market participants as well as
promoting the confidence and understanding of
investors of its operations. In short, fairness,
efficiency and transparency constitute our
ongoing vision and ultimate objectives.
In 1990, the Egyptian government started an
economic reform and restructuring program.
The move toward a free-market economy has
been remarkably swift and the process of
deregulation and privatization has stimulated
stock market activity. In mid-1997, the
Exchange started its modernization plan that
included an overhaul of its trading system,
listing and membership rules, OTC trading and
investor education.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
PAGE 40
For 2004, CASE plans to:
• finalize its strategic position paper on
turning the Exchange into a private company,
to be given to the market regulator and the
Ministry of Foreign Trade in the first quarter of
2004;
• focus on having well-capitalized brokerage
firms (with the implementation of its
membership rules), quality issuers and well-
regulated markets to ensure that the markets
support transparency, fairness and efficiency;
• work vigorously toward more corporate
disclosure and strengthening corporate
governance in Egypt.
• encourage new listings of attractive local
companies in the gas, energy and telecom
sectors (eg. Vodafone Egypt listed on
21 December 2003); and
• be in a position to greatly advance the
reforms of the Egyptian economy by
constructing a market of quality listed
companies.