Last Update 13:10
Friday, 24 May 2019

Egypt President ratifies Amended Capital Market Law

The amended law reorganizes sukuk issuance and introduces new financial instruments including futures trading

Ahram Online , Tuesday 20 Mar 2018
File Photo: Egypt's President Abdel Fattah al-Sisi (Reuters)
Views: 4563
Views: 4563
Egyptian President Abdel-Fattah El-Sisi has signed the amended Capital Market Legislation into law in a presidential decree published by the Official Gazette, according to a Ministry of Investment and International Cooperation statement issued on Monday.
The amended Capital Market Law aims to encourage investment and offer financing opportunities for public and private projects, Investment Minister Sahar Nasr said.
The legislation allows also investors to hedge risks by introducing futures trading, a practice in which to two parties agree to trade an asset at a future time at a determined price.
The House of Representatives had approved in February amendments to 45 articles of the law, which were presented to the House by the ministry.
“The amendment is the largest and most comprehensive since the law was issued 26 years ago,” Minister Nasr said.  
Amendments include a reorganization of the issuance and trading of sukuk (bonds that generate returns in a way that complies with Islamic Sharia) as a financial tool in the capital market, effectively canceling the old sukuk law.
In addition, the changes stipulate a reduction of listing fees for securities to 0.002% from 0.005% to help small and medium enterprises find new sources of funding by listing on the Egyptian Exchange.
Amendments also protect the rights of minority stakeholders in cases of acquisitions and increase penalties for financial crimes including violations of acquisition regulations and trading based on insider information.
The newly-ratified law also establishes a federation for securities companies for the first time in Egypt, to replace the Securities Workers' Syndicate first established in 2012.
In February, credit rating agency Moody’s hailed the law as credit positive for banks.
“The amendment is credit positive for banks because the increased capital markets activity will raise banks’ income from their debt capital markets business while also providing funding options,” Moody’s had said.
The law helps Egypt’s economy reach global competitiveness, achieve financial inclusion and activate the role on the non-banking financial sector to boost economic growth, Minister Nasr said. 
Search Keywords:
Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.