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Dr. Sahar Nasr, Minister of Investment and International Cooperation and Dr. Mohamed Farid, EGX Chairman, held a meeting with members of the Boards of Directors of capital market associations, in the presence of Mr. Mohsen Adel, Vice Chairman of EGX, and the participation of Mr. Mohamed Abdel Salam, MCDR Chairman and Mr. Mamdouh Abou El Azm, Chief Executive Officer of the Investor Protection Fund for Non- Commercial Risks, at EGX smart village venue.
The meeting reviewed the means of developing financial mechanisms and tools to increase the depth and raise the efficiency of the Egyptian capital market to coincide with the economic reform plans and restructuring of the national economy adopted by the Egyptian government, as well as discussing the features of the future plan for the development of the capital market system.
The Minister pointed out that the meeting comes parallel to the Ministry's interest in developing the Egyptian capital market system and modernizing its mechanisms to play its role in financing economic growth and to increase the investment and saving rates, noting that the first steps were the amendments approved by the Cabinet recently, which included the introduction of new tools for the capital market system. Those new tools included the establishment of a commodities exchange and financial instruments as well as amendments to a number of organizational aspects of the activities of the Egyptian capital market. She also stressed on consulting with the capital market associations when preparing the executive regulations for all laws, noting that she is keen to review the views of the private sector on various laws.
Mr. Mohamed Farid, said that the meeting comes in the context of continuous cooperation between the concerned parties and the various market parties to review their views on EGX's management plans during the coming period for formulating a more developed and effective system for the Egyptian capital market. He assured that the executive management of EGX and its Board of Directors are totally aware that the continuous communication with active parties in the market is the real beginning of success of any reforming and restructuring plans.
He added that the meeting discussed the plans and proposals of the market parties to expand the base of investors as well as the efforts made to encourage medium and long-term investments and ways to improve liquidity levels in the market. He pointed out that the management of EGX adopts a trend to open the market and support active associations working in the market to develop an integrated structure for modernization and development of all parties in the Egyptian capital market. During the meeting, EGX Chairman asked the representatives of the associations to submit their overall proposals taking into consideration the interests of all parties in the market.
Mohsen Adel, EGX Vice Chairman EGX, said that the amendments to the Capital Market Law activates the role of capital market associations, as for the first time in decades, it is allowed to establish the so-called "Union of Capital Market Workers". The Vice Chairman assured that the use of mechanisms and regulations to manage the market will be applied to maintain the interests of different market parties.
During the meeting, an open and inclusive discussion took place between the Minister, EGX Chairman and the members of the capital market associations' Boards of Directors on ways to activate the market and introduce new financial and trading mechanisms either organizational or technical as well as to identify the most important challenges facing the market industry and how to deal with them, which some attendees have concluded in some legislative and organizational reforms are expected to be approved by the concerned authorities in the coming period.
The meeting also discussed proposals to activate both supply and demand sides equally by speeding up the implementation of the program to expand the ownership base of government companies through listing in EGX, as well as the need to consolidate and intensify the marketing efforts of all parties to improve liquidity levels and attract new investors.
