Business Hub – Cairo:
FRA launches a community dialogue on the capital market development strategy for the next four years
Next Sunday, the Financial Supervisory Authority will launch its community dialogue on the strategy for developing the capital market (2026-2022), With the participation of members of the Capital Market Advisory Committee of the Authority, the Egyptian Stock Exchange, the Misr Central Clearing, Depository and Registry Company, and the Investor Protection Fund, The Egyptian Securities Association and the Securities Division, The Egyptian Association for Fixed Income Instruments, in addition to representatives of the various market parties and representatives of the media, to participate in the discussion on the Authority’s initiatives to develop the capital market for the next four years, and to develop a vision for increasing the market’s size and its percentage of GDP, This is within the framework of the second phase of its comprehensive strategy for non-bank financial activities (2026-2022).
This is due to the pivotal role that the capital market plays in the development of the economy. stimulating the transfer of accumulated savings into investments in new projects; After it was monitored that the total value of securities issuances increased to more than 280 billion pounds in 2021, compared to more than 141 billion pounds in 2017, And an increase of nearly 100%, despite the Corona pandemic.
The axes of capital market development include the initiatives adopted by the authority to support the role played by the Egyptian Stock Exchange in attracting investments; Including a scenario for increasing the size of market capital and its percentage of domestic product depends on the speedy implementation of a program to expand the ownership base of state-owned companies, which is formed through a short-term and long-term scenario.
The authority had targeted, in its comprehensive strategy for the non-banking financial sector (2026-2022), raising the market value of companies listed on the Egyptian Stock Exchange to 1.6 trillion pounds by the end of 2022. And due to the circumstances of the Corona pandemic and the slowdown in the global economy that I love, it prevented the achievement of the target, But with the stability, I expect the markets to witness it. Which helps encourage the private sector to list its companies on the stock exchange, in addition to offering state-owned companies and civil companies owned by the National Service Authority. The market capital may reach nearly 1.6 trillion pounds by 2026. In the event of offering the New Administrative Capital and the targeted government companies to reach EGP 2.6 trillion, This means that the market capitalization ratio to GDP expected in 2026 will reach 24%.
