The Clap
Rami El-Dokany, EGX president, is studying the possibility of developing a new Sharia-compliant index and launching a financial derivatives exchange during H2 2023.
What
El-Dokany also added that some trading mechanisms, most notably short selling, are set to be revamped by the coming February to be better suited for market conditions.
Short selling is when an investor borrows a security and sells it in the market with the intention of buying it back at a lower price later.
In addition, the commodity exchange will see the addition of a number of commodities during 2023.
So What
These developments in the EGX will aid in promoting the Egyptian market and aim to attract more Arab and foreign investors during Q1 2023.
Now What
More listings on the EGX, better trading mechanisms, and the establishment of a Sharia-compliant index will all play an instrumental role in the development of Egypt’s capital markets.
