In a recent announcement, FTSE Russell revealed that Egypt has been removed from its watchlist and will maintain its classification as a secondary emerging market. This decision was made following the company's annual review, which was published on October 6, 2026. According to Mohamed Sabri, Deputy Head of the Egyptian Exchange, this development is a positive affirmation of the improvements in liquidity and compliance with the required classification criteria.
The Egyptian stock exchange was initially placed under review due to a decline in the number of eligible Egyptian stocks in the FTSE Emerging Markets Index for large and mid-cap companies. This decline resulted in only one eligible stock, falling short of the minimum requirement of two stocks. However, following economic reforms and initiatives implemented by the Egyptian government and the stock exchange, the liquidity situation has improved. This improvement has led to three mid-cap and three small-cap stocks meeting the eligibility and size requirements.
The Egyptian Exchange has also successfully met the nine required market quality standards, ensuring its classification as a secondary emerging market. As a result, Egypt has been removed from the watchlist, which could have led to a downgrade to a frontier market. This development highlights the progress made by the Egyptian stock exchange in enhancing its market quality and liquidity.
The FTSE Russell review also brought about other changes, including the addition of Oman to the watchlist, potentially leading to an upgrade to a secondary emerging market. Furthermore, Greece has been upgraded to an advanced market, while Vietnam has begun its gradual upgrade to a secondary emerging market. Nigeria, on the other hand, has been reclassified as a frontier market.
According to Mohamed Sabri, the decision by FTSE Russell serves as a positive confirmation of the improvements in liquidity and compliance with the required classification criteria. This development eliminates the possibility of a downgrade that led to Egypt being placed under review. The Egyptian stock exchange's efforts to enhance its market quality and liquidity have yielded positive results.
The annual review by FTSE Russell assesses the classification of various stock exchanges and makes changes as necessary. The next review is scheduled for April 6, 2027. The classification of Egypt as a secondary emerging market is expected to have a positive impact on investor confidence and the overall development of the Egyptian stock exchange.
The removal of Egypt from the FTSE Russell watchlist and its maintained classification as a secondary emerging market demonstrate the country's progress in enhancing its stock exchange. This development is a positive indicator for investors and reflects the efforts of the Egyptian government and the stock exchange to improve market quality and liquidity.
Key points
- Egypt removed from FTSE Russell watchlist, maintains secondary emerging market status
- Improved liquidity and compliance with classification criteria led to the decision
- Next FTSE Russell review scheduled for April 6, 2027
