Cairo – November 6, 2023: The new Sharia-compliant index on the Egyptian Exchange (EGX) is expected to launch within the first half of next year, explained EGX chairman Ahmed El Sheikh in a statement to regional media on Monday.
To be included in the index, companies are required to ensure that their activities, as well as financial and accounting conditions, are in line with the provisions of Islamic Sharia law. El Sheikh pointed out that the selection process will be led by the Sharia Supervision Committee of the Financial Regulation Authority.
The EGX head revealed that the stock market is already discussing with up to four medium-sized private sector companies for potential registration on the new index, but did not disclose company names or their sectors.
Former EGX chairman Rami El Dokani previously told media that the index was expected to launch sometime in October/November back in August, adding that the stock market authority had partnered with Standard & Poor’s (S&P).
El Sheikh explained that the exchange is seeking to launch new social media campaigns to promote investing in the stock market in order to encourage new market trading and attract a new segment of investors.
Since the start of 2023, the stock market’s benchmark index EGX 30 has grown by around 58 percent as of Thursday trading and has broken its previous highest-recorded point value of 20,000 points. Sunday trading reported that the main index jumped by 2.01 percent to close at 23,094.69 points.
El Sheikh recently shared that the anticipated real estate exchange could be live within the coming four months.
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