Chairman of the Egyptian Exchange (EGX) Mohamed Omran said the government’s and the Central Banks of Egypt’s (CBE) decision to increase capital of two banks through the stock exchange is considered one of the most important economic decisions made in Egypt during the recent years.
The statement was part of Omran’s speech in the opening session of the forum held in Sharm El-Sheikh by the Union of Arab Banks (UAB) on Thursday about the role of financing and investment in reinforcing financial inclusion, stability, and fighting terrorism in Arab counties.
He said this step will contribute to the revitalisation of economy and attraction of investors and investments. It will also enhance the attractiveness of capital market. It is crucial to revitalise the bond market, which represents about two thirds of the size of investment portfolios in developed world markets.
Fluctuations and changes have become key features of capital markets in the world and stability of stock exchanges has become part of the past. Stock exchanges have always been important sources of financing and the proof is that Saudi Arabia sold a share of one of its largest energy companies through the stock exchange with the goal of using the outcome to bridge the deficit that began to appear in its budget.