FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT 2015
EGYPT
Country Facts
key CAPITAL MARKETS INFORMATION
Country Egypt Legal
Special status within the law
Capital Cairo Regulation
Semi self-regulatory organization
Securities market regulations Egyptian Financial Supervisory Authority (EFSA)
Area (km ) 1,001,450
Population (million)* 86.7
GDP (USD billion) 287
Currency Egyptian Pound (LE)
2
Exchange rate (1 USD) 7.14
Trading rules Shared regulatory responsibility
Surveillance Yes (MilleniumIT surveillance system)
Corporate actions Yes
Time zone UTC/GMT+2 hours Trading halts regulations Yes
Calling code (+20) Investor protection Yes
* Excluding Egyptians living abroad
key economıc data
REAL GDP GROWTH (%)
6
NET FOREIGN DIRECT INVESTMENTS
(USD billion) BUDGET DEFICIT/GDP (%)
12 16.0
8 12.0
4 8.0
0 4.0
5
4
3
2
1
0
08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16
H1
H2
08/09 09/10 10/11 11/12 12/13 13/14 13/14 13/14
KEY HIGHLIGHTS OF THE YEAR International Community Praises EGX
Improvements in the Disclosure & Governance
Levels EGX has attained an impressive international
recognition and appreciation during the Year
2014,on top of that came choosing EGX as the Most
Innovative Stock Exchange in Africa for the Year
2014. This was followed by the intense movements
of EGX to grab the post of the President of the
Federation of Euro-Asian Stock Exchanges (FEAS).
EGX has ended the year with a new appreciation
of African stock markets, electing EGX-for the
third time in a row- as a member of the Executive
Committee of ASEA.
The year 2014 has witnessed significant structural
developments regarding investors’ protection,
starting the year with new listing & disclosure rules
to ensure more investors’ protection & to move
toward a wider application of corporate governance
rules. The year also witnessed a strategic move
made by EGX management in dealing with a
number of crises facing the market, by enforcing
the company to disclose more about its financial &
operational.
Contributing in Improving Egypt’s Investment
Climate
The World Bank and the International Finance
Corporation (IFC) annual 2014 Doing Business
report showed an improvement in Egypt’s ranking,
moving forward by one place. Despite the decline
of Egypt’s ranking in some indicators that are used
in the assessment, this has been offset by getting
a high score in minority investor protections
indicator, rising up by 18 points.
20
Deepening the Legislative & Regulatory
Infrastructure
The year 2014 has witnessed many of the legislative
& regulatory developments, which targeted the
development and improvement of the trading
environment in the Egyptian Exchange, starting
the year with the issuance of the new listing &
disclosure rules to ensure more investors’ protection
and a wider application of corporate governance
as well.
08/09
09/10
10/11
11/12
12/13
13/14
14/15
EGX Effective and Significant Contribution in
the Economic Growth
Within the framework of EGX continued efforts to
support the Egyptian economy through providing
necessary funds for companies, helping them to
expand and grow, the capital increases surged
dramatically in 2014, jumping to LE 9.3 billion, the
highest record since 2011,Additionally, EGX has
approved the capital increases of other companies,
with a total value of LE 2.5 billion.
From another perspective, the number of
companies that have already increased their capital
or admitted for capital increase & attained the
approval has reached 72 companies during the year
2014.
Extensive Promotional Activities & EGX First IPO
Summit
EGX promotional strategy has been shifted
significantly during this year toward intensive
promotional activities to attract solid companies
to get listed. EGX has also worked on changing the
perception the business community has about the
Egyptian market. On the other hand, EGX organized
for the first time the EGX IPO Summit to give the
companies a better insight about listing and its
benefits.
FULL MEMBERS