Ahmed El-Sheikh, Chairman of the Egyptian Stock Exchange, announced that there are no obstacles to the launch of the real estate exchange and the trading of shares within it as financial securities. Speaking at the 2024 Stock Exchange Harvest Conference in Ismailia, El-Sheikh highlighted that the establishment of the real estate exchange requires legislation to regulate joint ownership and the transfer of property shares, with the recognition of these shares as tradable securities.
El-Sheikh explained that these legislative changes involve multiple authorities, and once an agreement is reached, the real estate exchange will be launched, with trading commencing soon thereafter. He further noted that a major real estate company will be listed in January 2025.
Additionally, El-Sheikh revealed that the Stock Exchange has prepared a joint study with the General Authority for Investment and Free Zones, aimed at linking the expansion of tax and investment incentives to companies listed and trading on the exchange. This includes a focus on companies that export a specified portion of their products or manufacture alternatives to imported goods, as well as branches of international firms operating in Egypt, with the goal of encouraging them to establish local production hubs in Egypt and use the country as a regional manufacturing and export center.
In response to a question from Al-Masry Al-Youm during the conference, El-Sheikh confirmed that the study is still ongoing with the authority, and the Stock Exchange is awaiting an agreement on the expansion of incentives for companies wishing to list. He pointed out that offering incentives to companies requires alignment with several authorities, and once a consensus is reached, details about the listing benefits will be disclosed.
Regarding market performance, El-Sheikh reported that the stock market’s market capitalization stood at 15.6% of Egypt’s GDP by the end of 2024, a sharp decline from over 100% in 2007-2008, due to ongoing macroeconomic challenges that have impacted overall market performance. The real estate sector accounted for approximately 12% of market capitalization by the close of 2024, ranking fourth after banking (23%), automotive (16%), and healthcare and pharmaceuticals (15%).
