Arab markets contain 1,662 listed companies with $3.1T in capital: EGX Chairman

CAIRO – 29 March 2021: The total number of companies listed in the Arab markets reached 1,662 companies with a capital of $3.1 trillion by the end of 2019, Chairman of the Board of Directors of the Egyptian Exchange (EGX) Mohamed Farid said Monday.

Farid, who was the head of the Federation of Arab Stock Exchanges starting from April 2019, indicated that the federation currently includes 21 members representing about 17 stock exchanges and commodities and 4 clearing companies, in addition to many brokerage companies and banks in the Arab region.

This came during the annual meeting of the Federation of Arab Exchanges hosted by the Kingdom of Saudi Arabia, using technological means to save lives and ensure continuity of work, in light of the continuing repercussions of the Corona pandemic.

Farid thanked all members of the union for their sincere effort and hard work to develop and develop the union during Egypt's presidency of the union.

He pointed out that the federation was able to bring about a qualitative leap at the institutional and technical level within the union, which would ensure the union continued to play its role in a more efficient manner in supporting Arab stock exchanges, enhancing their capabilities and competitive standing, and enhancing intra-Arab trade in securities, as one of the most important sources. Financing economic and social development plans for our Arab nation.

During his speech, Farid reviewed the strategy of the work of the Union under the Presidency of the Egyptian Exchange, which was based on several main axes, the most important of which is working to put the Union on a stable path in the long term, by formulating policies that contribute to the development and development of its business and activities in order to enhance and facilitate inter-Arab investments in securities, as well as developing a joint cooperation and coordination platform for exchanging experiences and seeking opinions between all relevant parties.

“Based on analyzing the position of Arab stock exchanges and identifying the opportunities and challenges, we have sought to make all possible efforts to build the capabilities of Arab stock exchanges and clearinghouses in a manner that contributes to increasing their competitiveness and integration of their activities and services, as well as developing and coordinating all rules regulating registration and trading, while working on Simplifying and facilitating investment procedures,” EGX Chairman stated.

Farid mentioned that the executive leaderships of Arab stock exchanges showed great flexibility in dealing with the turmoil in the markets starting from 2020 due to the spread of the Corona pandemic.

He pointed out that the crises revealed the strength and solidity of the Arab financial markets, so that transactions or settlements did not stop, and investors were able to enter and exit the markets, and the Union continued to activate communication channels between its members and global financial institutions, to work on developing and raising the efficiency of stock exchanges and its member companies.

He noted that most Arab stock exchanges and clearinghouses were able to maintain the continuity of work and settlements as one of the most important roles played by organized markets, despite the total and partial closure of some Arab countries.

He mentioned that stock exchanges and clearinghouses relied on different technological systems, such as electronic voting in societies and boards of administrations that enabled all parties, including listed companies, investors and brokerage firms, to deal fully remotely, and as a result of these efforts, trading rates recovered their activity and health in most Arab financial markets during the second half of 2020 year.

Farid explained that during the presidency of the Egyptian Stock Exchange to the Union, a great way was made in coordination with all parties to discuss the possibility of integrating modern financial technology systems in stock exchanges and companies listed on stock exchanges, especially what is known as the KYC rules remotely, which would lead to It facilitates the process of investing any Arab citizen in any securities listed in any other Arab stock exchange, if activated, in addition to being an important mechanism that helps expand the investor base in financial markets, and enhances liquidity and trading.

Regarding the restructuring of the federation and the creation of new financial indicators, Farid said, “We have worked together since the beginning of my honor under the chairmanship of the Arab Federation of Exchanges in April 2019 to restructure the federation bodies in cooperation between the members of the Federation and the General Secretariat by introducing fundamental amendments to the articles of association and developing a strategy Maintains the sustainability of its business development and the stability of its activities.

He pointed out that during the years 2019 and 2020 the statute of the federation was amended to allow the election of a board of directors for the first time to manage and manage its affairs, and a number of specific committees for review, sustainability and financial technology, and to develop the rules for working in securities, with the aim of enhancing the capabilities and capabilities of the union, and developing its executive and oversight mechanisms and help achieve its goals.

During his speech, the EGX chairman affirmed that the election of a board of directors to the Federation of Arab Exchanges is an unprecedented "strategic" step that enhances the institutional transformation process within the federation and reflects the current administration's keenness on the continuity of the reform and development process within the federation in a stable manner.

On the level of new financial indicators and products, the Chairman of the Stock Exchange said: “The Union, in cooperation with Refinitiv, has succeeded in launching an index for low-carbon companies in the MENA region, where environmental and social data and analyzes and corporate governance have become of critical importance to financial markets in the Middle East and North Africa. Middle East and North Africa region ".

He pointed out that to develop and build the human capabilities of member stock exchanges, two memoranda of understanding have been signed between the Federation of Arab Stock Exchanges and the Association of African Exchanges (ASEA), aimed at enhancing the competitiveness of member stock exchanges and supporting and developing capital markets in the region.

He mentioned that a memorandum of cooperation was signed with the Financial Technology Agency for the Middle East and North Africa Region for Financial Technology (MFTA), in an effort to enhance the role of financial technology and the use of technological applications in Arab financial markets.

He pointed out that Cairo hosted a two-day workshop for members of the union in cooperation with MFTA, confirming the great interest that the current management of the Federation attaches to financial technology and entrepreneurship.