By listing state-owned companies on EGX, privatization program would boost capital market liquidity, says FRA chairman – Markets and business – Business

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Chairman of the Financial Regulatory Authority Mohamed Omran.Photo: Al-Ahram

Omran made his statements on the sidelines of the community dialogue launched by the FRA to discuss the strategy for improving the Egyptian capital market (2022-2026).

The strategy aims to boost the Egyptian Stock Exchange (EGX) and the role it plays in attracting new investment.

It also intends to attract new companies to list on EGX as well as broaden the ownership base of public companies.

During the dialogue session, Omran said that the FRA is set to issue future securitization bonds worth EGP 800 million and support these capital market tools in the future to reach a total value of EGP 80 billion, Omran said.

In addition, Omran revealed that business investment in the local market is estimated at EGP 540 billion, noting that the FRA is seeking to increase this value and is preparing a study to collect detailed data on investment in the domestic market. .

According to him, business investment is important because it pumps necessary liquidity into the capital market, which would improve its efficiency.

The Egyptian cabinet is currently holding a community dialogue on the policy document on state ownership which aims to increase the private sector’s share of economic activity to 65%, from the current 30%, over the next three years.

The policy aims to increase the country’s real GDP growth to between 7 and 9 percent by increasing public investment by 25 to 30 percent, thereby creating more job opportunities.

Under this policy, however, government interference in economic activity will intensify in stagnant sectors, leading to a more attractive investment climate for investors.

The policy also aims to achieve more financial savings, adopt financial discipline and maintain the resilience of the state economy against internal and external shocks, as well as strengthen social safety nets.

The policy proposes 80 economic activities to be operated by the private sector totally or in partnership with the government.

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