Bahrain’s bourse takes over presidency of Arab Federation of Exchanges

Fatma Salah
5 Min Read

The Bahrain Stock Exchange assumed the presidency of the Arab Capital Markets Federation from the Saudi Tadawul Group during the activities of the annual conference of the Arab Capital Markets Federation, which was held virtually this year.

The conference, which ran from 29 to 30 March, included nearly 20 workshops in various fields related to the securities industry, such as sustainability, fintech, and how to strengthen the infrastructure of Arab capital markets, as the conference sought to create an enabling environment for Arab capital market leaders to consult and share ideas and experiences with international experts and practitioners.

It also aimed to develop and raise the efficiency of the competitiveness of Arab capital markets and push them to play a greater role in supporting the economic and social development plans of Arab countries by providing platforms that help companies access the financing necessary for their expansions and increase the volume of their business and activities.

Mohamed Farid — who headed the Federation of Arab Capital Markets during the two sessions that preceded the presidency of Saudi Arabia — participated in a session on the role of companies that are established for the purpose of private acquisition, known as SPACK, which are registered in capital markets and help emerging companies, especially those with a business model that includes an entrepreneurial component.

Also in attendance at the session was Mostafa Kandil — the Founder and CEO of Swvl — and a number of international experts in the field.

Farid said that the federation’s Board of Directors is working to develop a stable path that contributes to providing all aspects of support to strengthen the basics of the work of Arab stock exchanges and enable them to face challenges and take advantage of new opportunities.

He also stressed that enhancing the levels of awareness and knowledge of the role of financial markets and speeding up the use of technological applications is a necessity to enhance the liquidity and trading of Arab markets and attract more dealers in stock markets.

Farid added that the Egyptian exchange’s (EGX) management submitted a proposal early last year to introduce the necessary amendments to the rules for listing and writing off securities in order to allow the registration of companies established for the purpose of private acquisition in accordance with controls and requirements as a step that would enable them to acquire start-up companies that have success stories, growth opportunities, strong fundamentals, and injection of funds.

He pointed out that the current legislative environment in Egypt and the regulatory rules are ready to receive companies that are established for the purpose of acquisition as an important step that comes in response to the rapid changes in the business models of emerging companies, which differ from traditional companies; a step that would open new horizons for emerging companies that enjoy strong growth opportunities to expand through the money market, increase the volume of their business, and contribute more to the growth of the Egyptian economy.

He also stated that the listing and trading of emerging companies on the stock exchange enhances the chances of attracting foreign investments and diversifies investment options for all categories of investors, explaining that creating new financing solutions facilitates the process of investors’ access to the financing necessary for growth, thus supporting employment and achieving Egypt’s 2030 Vision.

For his part, Rami Al-Dukani — the Secretary-General of the Arab Capital Markets Federation — said that the union will work to complete its efforts to analyse the position of Arab stock exchanges and identify opportunities and challenges and take all necessary sincere efforts to build the capabilities of Arab stock exchanges and clearinghouses in a way that contributes to increasing their competitiveness and the integration of their activities and services, as well as developing and coordinating all the rules regulating registration and trading while simplifying and facilitating investment procedures

He added that the Federation of Arab Capital Markets signed a memorandum of cooperation with the Federation of Central Depository and Registry Companies for African and Middle Eastern Countries to enhance cooperation in the process of building and developing capacities, which contributes to improving the performance of Arab deposit, registry, and central activity.

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