The Egyptian Exchange (EGX) and the General Authority for Investment and Free Zones (GAFI) have entered into a partnership to facilitate procedures for registering securities on the stock market and to increase the capital of listed companies.
The cooperation protocol was signed by EGX Chairperson Mohamed Farid, and GAFI Executive Director Mohamed Abdel Wahab.
The enhanced cooperation between the two sides will contribute to simplifying and automating the required transactions, and to improve the business environment for companies.
Farid said that the EGX-GAFI cooperation is permanent and continuous, and aims to coordinate at the highest level between the two parties. It looks towards facilitating all procedures needed by companies whose securities are listed on EGX tables, which contributes to improving the business environment in Egypt’s securities industry.
“A joint executive committee will be formed to set up the mechanisms, controls and operational procedures necessary to achieve the objectives of this protocol,” Farid added, “This protocol provides for the activation of electronic information and data exchange, as well as the speeding up the transition to electronic systems in various services needed by the listed companies.”
For his part, Abdel Wahab said that the protocol is gaining increasing importance, especially with regards to working on automating transactions. This falls in line with the Egyptian state’s orientations towards the digital economy to facilitate investors.
“Cooperation stems from GAFI’s keenness, in cooperation with the EGX, on building an integrated and updated database on both sides,” he said, “This also includes switching to electronic systems in a way that contributes to accelerating the pace of services needed by companies whose papers are registered.”
He explained that GAFI aims improve Egypt’s business environment, whilst simplifying and facilitating all procedures for the local and international business communities.
This is in an effort to enhance the opportunities for Egypt to attract more foreign direct investment (FDI) and increase productivity. Additionally, it will help the Egyptian state achieve its goals of economic and social development plans, which it embarked on in November 2016. This step had a great impact on the stability of macroeconomic indicators, and restored the confidence of investors in Egypt.