Egypt's bourse to launch Islamic Sharia-Compliant index in 2024: Chairman

Ahram Online , Monday 6 Nov 2023

The Egyptian Exchange (EGX) plans to introduce a new index compatible with Islamic Sharia in the first half of 2024, said Ahmed El-Sheikh, the Chairman of EGX.

Ahmed El-Sheikh, chairman for the Egyptian Exchange.
Ahmed El-Sheikh, chairman for the Egyptian Exchange.


The introduction of this index aims to attract a new segment of investors and bolster Egypt's ongoing efforts to enhance foreign inflows and encourage investment, El-Sheikh added during an interview with Asharq Business on Monday.

The proposed index will consist of shares from companies whose activities, financial practices, and accounting conditions align with the principles of Islamic Sharia.

Selecting the eligible companies for inclusion in the index will be the responsibility of the Sharia Supervision Committee of the Financial Supervisory Authority.

Egypt's drive to attract new types of investors is part of a broader strategy to invigorate the economy and foster a favourable investment climate.

El-Sheikh further disclosed that the Stock Exchange is actively working on launching promotional campaigns through "social media" in collaboration with brokerage firms.

These steps come on the heels of remarkable growth in the Egyptian Exchange. The main index witnessed a 58 percent increase from the beginning of this year until last Thursday's session.

Concurrently, the market value of stocks has skyrocketed by approximately EGP600 billion during the same period.

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