Egyptian stock exchange to launch new Sharia-compliant index by first half of 2024

Newsletter

08 Nov 2023

Egyptian stock exchange to launch new Sharia-compliant index by first half of 2024. For inclusion in this index, companies are required to ensure their activities, as well as their financial and accounting conditions, comply with the provisions of Islamic Sharia law. The selection process will be overseen by the Sharia Supervision Committee of the Financial Regulation Authority. EGX is currently in discussions with up to four medium-sized private sector companies about a potential listing on the new index, although specific company names or sectors were not revealed. (Asharq Business)

This announcement reinforces previous statements from former EGX Chairman Rami El Dokani, who indicated that the index launch was planned for October or November.
EGX plans to leverage social media campaigns to support stock market investment, aiming to grow new market trading and attract new investor segments. EGX’s benchmark index EGX 30 has already seen notable growth since the start of 2023, with a 58% increase reported as of Thursday trading. (Asharq Business)
Last February, Egypt announced that it would offer stakes in 32 companies over the course of a year, and this number later rose to 40 companies, but only Pachin, and stakes in Al-Ezz Dekheila Steel, and Telecom Egypt, and Eastern Tobacco, were sold.
All of which were companies that were not part of the initial offering program and were added later, whether after the sale process or shortly before it. Also, the government succeeded in selling shares in petroleum companies such as “Ethedco”, “Elab”, and “Egyptian Drilling”, which are part of the IPO program, and it expects to sell “Wataniya” company before the end of 2023 and a number of energy projects. (Asharq Business)
Egypt to launch 1st online gold, silver auction on November 14th.
The Egyptian Assay and Weights Administration is planning to launch the first online gold and silver auction via the Egyptian Mercantile Exchange (EMX) platform on November 14^th. The auction’s first session will include 66 gold bars and 41 silver ones. The auction targets traders and manufacturers, noting that the proceeds would be transferred to the state’s treasury. (Al Borsa News)
Egypt’s ECSM opens high-speed rail concrete ties factory to conserve Egypt’s foreign exchange reserves.
The Egyptian Company for Self-Maintenance for Roads and Airport (ECSM), a public sector company under the Ministry of Transport, announced on Monday the launch of its 500 million EGP (16 million USD) concrete ties manufacturing factory for the country’s high-speed electric train network. The factory will use locally sourced raw materials to produce the high-speed rail ties and thus conserve Egypt’s foreign exchange reserves. (Daily News)
Egypt to barter Kenyan tea amid USD crunch.
Egypt is willing to barter instead of using up its supply of USD to continue purchasing tea from Kenya. The world's largest exporter of black tea was asked last week if it could trade tea for anything that Egypt produces, since many countries are experiencing a shortage of US dollars. Speaking on November 6th at a panel in Nairobi, the Kenyan official said that Egypt's ambassador made the request. After Pakistan, Egypt is Kenya's second largest tea buyer. (Bloomberg)
Egypt's Exponential Rise in Exports to Saudi Arabia in 2023.
According to reports by EastFruit, Egypt has seen a significant boom in its melon exports to Saudi Arabia by doubling its export volumes in just the first eight months of 2023. The surge includes exports of both watermelons and melons. From January to August 2023, Egypt exported 16,500 tons of melons, twice that of the previous year and two and a half times more than the average over the past five years. In fact, watermelon shipments have already increased by 80% compared to last year's total and melon exports are currently 2.4 times higher. (Daily News)
Egypt said to buy around 100,000 metric tons white sugar in tender.
Egypt's state commodity buyer GASC is believed to have purchased around or over 100,000 metric tons of white refined sugar in an international tender which closed on Sunday. It was bought from Wakalex on behalf of ED&F Man and also from Savola Egypt at estimated 780 USD a metric tons CIF. GASC was seeking the sugar on behalf of the Egyptian Sugar & Integrated Industries Company (ESIIC). Offers were sought for arrival in Egypt between Nov. 27 and Dec. 15 for at-sight payment using funding from the International Islamic Trade Finance Corporation (ITFC). (Daily News)
Egypt ratifies new amendments to VAT on cigarette.
The House of Representatives has adopted a government-drafted amendment to the value-added tax (VAT) law No.67 of 2016, under which an additional tax on local tobacco products is imposed. Accordingly, the tax rate on the 20-cigarette pack has been determined at 50% of the consumer’s final selling price, in addition to EGP 0.450 for the locally manufactured pack whose price does not exceed EGP 31. Also, an EGP 0.600 will be added per cigarette pack whose price is more than EGP 31 and less than EGP 45. Local and imported packs whose price exceeds EGP 45 will see an EGP 0.750 additional tax. (Economy Plus)
Egypt on track to meet 2023 tourist arrivals target amid Gaza war: Issa.
Egypt is on the course to meet its target of luring 15 million tourists in 2023 despite the repercussions of the Hamas-Israel war, Minister of Tourism Ahmed Issa stated. Issa noted that the fallout in the country’s tourism since the onset of the war has been contained to less than 10% of the total bookings. He added that the country would offer an additional 500 USD incentive per flight landing in Sharm El-Sheikh. The number of tourists rose 7% year on year (YoY) in the 10 months to October 2023, given the higher tourist arrivals from Germany and China, Issa said. (Reuters)