Ahmed El-Sheikh, Executive Chairman of The Egyptian Exchange (EGX), and Thaer Adnan Hashem, the Director of the Board of Governors of Iraq Stock Exchange, signed a cooperation protocol on Monday, August 12, 2024. The ceremony was witnessed by Faisal Al-Haimus, Chairman of the Iraq Securities Commission, and Heba El-Serafi, Vice Chairman of The Egyptian Exchange. The protocol aims at enhance cooperation and coordination between the two parties, as well as increase joint initiatives and the exchanging of experiences and information across all investment-related areas. The protocol targets improve existing legislative procedures for both parties, and work to increase investment awareness and attract mutual investments, as additionally it aims to channel savings towards investments in the capital market and fostering the transition to digital economy, thereby boosting competitiveness.
Ahmed El-Sheikh stated that the protocol aims to enhance cooperation between the two parties and facilitate the exchange of expertise and information regarding updating legislation, regulations, procedures, programs and work methodologies. Moreover, the protocol will enable the exchange of periodic and annual bulletins, as well as periodic information on listed companies. He further elaborated that the objective is to provide the fundamental information required by investors in both countries to increase mutual investments in the two stock markets.
El-Sheikh said: The two parties will discuss mechanisms to improve and to diversify financial products as well as to increase liquidity in both markets. He added: The two parties will work to encourage capacity building activities among brokerage firms and listed companies to fulfil the goals of spreading awareness and exchanging experiences.
El-Sheikh explained that signing this protocol aligns with the implementation of Article (58) of EGX’s development strategy, this article falls under the sixth pillar which addresses "promoting and spreading financial literacy, training and international relations".
In this context, Faisal Al-Haimus, Chairman of the Iraq Securities Commission, stated: “Signing this protocol represents a crucial step towards deepening cooperation between the Iraq and Egyptian stock markets, underscoring our shared commitment to bolstering economic ties between the two countries. This agreement aims not only to exchange expertise and information, but also to enhance the infrastructure of the financial markets in both countries by adopting the latest technologies and implementing the best international practices.”
Al-Haimus added: "We realize that financial markets represent the cornerstone of improving the national economy, and therefore strengthening the partnership between the two markets will directly contribute to achieving sustainable economic growth and attracting foreign investments. We also believe that this protocol will open new horizons for cooperation in various fields, such as financial innovation and developing new financial products, which will help enhance the competitiveness of both markets."
Al-Haimus assured the Securities Commission's commitment to providing the full support needed for the success of this cooperation, noting that the Commission will work to provide the appropriate regulatory environment to effectively implement the provisions of the protocol. He also expressed his confidence that this cooperation will enhance the efficiency of the two markets, and increase the levels of transparency and disclosure, which will foster investor confidence and contribute to achieving the goals of joint economic development.
For his part, Thaer Adnan Hashim, the Director of the Board of Governors of Iraq Stock Exchange, stated: Signing of this protocol, which was held under the patronage of the Chairman of the Securities Commission, Faisal AlHaimus, is an important step towards enhancing cooperation between Iraq and Egypt in the field of financial markets. He stated that This agreement aims to exchange expertise and information between the two markets, especially with regard to updating the legislation, regulations and procedures related to securities trading. We see this protocol as an opportunity to develop the infrastructure of the financial markets, raise investment awareness, and attract mutual investments between the two countries. We will also work to support the transition to the digital economy, enhance the competitive capabilities of both stock exchanges, and encourage capacity building and training for brokerage firms and listed companies.”
