FRA reports dynamic capital market as Egypt attracts investments

CAIRO – 17 October 2023: The Egyptian Financial Regulatory Authority (FRA) reported a substantial increase in the number of approvals for share issuances for new companies, capital increase for existing companies, and amendments to nominal values during the month of July.

A total of 202 approvals were granted, amounting to a value of LE 49.2 billion, in comparison to 241 approvals in July 2022, totaling LE 41.9 billion. This reflects a 16.2 percent decrease in the number of approvals while showing a remarkable 17.3 percent increase in the total value of capital, demonstrating a dynamic growth trend.

These approvals were divided into 190 approvals for share issuances (both for new and existing companies), with a total value of LE 27.5 billion during July 2023.

This marks a contrast with 227 approvals worth LE 39.6 billion in July 2022, reflecting a 16.3 percent decrease in the number of approvals and a 30.6 percent decrease in capital increase.

Additionally, eight approvals were granted for amendments to nominal values and capital reduction, with a combined value of LE 4.97 billion in July 2023, compared to 13 approvals worth LE 1.9 billion in July 2022. Here, the number of approvals fell by 38.5 percent, while the total value surged by an impressive 158.1 percent.

The FRA has provided data up to July 2023, revealing 1,656 approvals for share issuances, capital increases, and amendments to nominal values with a total export value of LE 207.3 billion.

In comparison, during the same period in the previous year, there were 1,883 approvals amounting to LE 186.2 billion. Although the number of approvals experienced a decrease of 12.1 percent, there was a significant 11.3 percent growth in capital increase.

The recent data showcases a flourishing capital market in Egypt, reinforcing the country's economic health and demonstrating an optimistic outlook for investors and businesses. This growth trend reflects the resilience and attractiveness of the Egyptian financial sector, underlining Egypt's commitment to encouraging investment and fostering economic growth.