Cairo: The Egyptian Stock Exchange (EGX) has teamed up with the European Bank for Reconstruction and Development (EBRD) on a project designed to enhance market liquidity. The initiative will primarily focus on assessing the current liquidity situation in the EGX and identifying strategies to boost market efficiency. A key part of the initiative involves reviewing the requirements for increasing liquidity include enhancing the presence of liquidity support institutions in the market, such as market makers and liquidity providers, as well as working on the presence of multiple financial instruments and the existence of trading and hedging strategies.

According to State Information Service Egypt, the project aims to strengthen mechanisms that support liquidity, including a more active and effective securities lending and borrowing system, easier access to lendable shares, and the development of improved hedging tools. The project team recently visited Egypt to assess the securities market, and their findings highlighted the strong foundation of the Egyptian capital market, positioning it as a potential leader among the region’s most developed and well-organized markets, the statement highlighted.

The market’s robust infrastructure, combined with plans for new offerings supported by the country’s growing economy, presents significant opportunities for further development. The team engaged with various market stakeholders to identify challenges and opportunities aimed at improving access for both local and foreign individual investors, as well as Egyptian and international institutions.