EGX launches first Sharia-compliant index during Wednesday trading

Cairo – June 12, 2024: Egypt’s stock market is launching the country’s first sharia-compliant index, EGX33, in collaboration with Standard & Poor’s, following approval from the Financial Regulatory Authority's main shariah supervisory committee.

The launch comes less than a month since the Egyptian Exchange’s (EGX) chair, Ahmed El Sheikh, announced the formation of a committee tasked with launching the index within the current quarter, comprising 30 to 50 listed companies.

Consisting of 33 companies from various sectors, the newly-launched EGX33 index adheres to a methodology approved by the shariah supervisory committee.

The committee includes esteemed scholars and experts in Islamic economics and law of financial transactions.

El Sheikh highlighted the increasing demand from local, regional, and international investors for sharia-compliant investment opportunities in a press release.

To ensure inclusivity, El Sheikh disclosed that sharia index companies are selected from the EGX100 index companies, alongside those with a sharia supervisory board.

The EGX33 index assigns specific weights to each company, with a maximum weight limit of 15 percent per company, accommodating investment standards and facilitating the development of new financial products such as index funds.

EGX33 joins the Egyptian Exchange's portfolio of successful indicators, building on the legacy of the EGX30 Index introduced in 2003.

Notable companies included in the new index are Talaat Moustafa Group Holding Company (TMG Holding), Elsewedy Electric Company, Abu Qir Fertilizers, Telecom Egypt, Fawry for Banking Technology and Electronic Payments, and Madinet Masr Housing and Development.