The Egyptian Stock Exchange (EGX) and the Abu Dhabi Securities Exchange (ADX) have signed a memorandum of understanding (MoU) to support market integration between Egypt and the UAE, and increase international investment flows. The agreement aims to strengthen the UAE-Egypt partnership and support the development of the financial services sector by enhancing market efficiency and creating a suitable business environment.
The MoU was signed on the sidelines of the annual conference of the Arab Federation of Capital Markets (AFCM) in Abu Dhabi. EGX Chairman Omar Radwan stated that the agreement will bolster Egypt's ability to attract new segments of international investors, in line with the EGX's strategy to strengthen ties with leading financial markets and establish itself as a leading investment destination in the region.
The EGX has seen significant growth, with its market capitalization growing 56.9 percent year-on-year in June 2026, the highest growth rate among Arab markets. The exchange's market capitalization exceeded EGP 4 trillion (almost $77 billion), and trading values reached EGP 17.9 trillion (around $344.6 billion) by September 2026.
The MoU covers exploring mechanisms to remove challenges related to cross-border trading channels and enable direct market access for investors in both countries. It also provides for establishing shared technical and legislative standards to support the dual listing of companies and investment instruments in the Egyptian and UAE markets.
The agreement also examines the mutual recognition of member brokerage firms and the use of fintech solutions and advanced digital systems. The EGX's partnership with other Arab exchanges will remain a cornerstone in creating an integrated trading environment that offers promising growth opportunities for both issuers and investors.
The EGX has received around 450,000 new investors during the first eight months of 2026, up from 300,000 during the same period in 2025. The exchange has also won two awards for its trading performance at the AFCM conference. The agreement builds on Egypt's recent efforts to develop its legislative measures and tax incentives to modernize the country's capital markets.
The MoU also covers capacity building and the exchange of operational and research expertise, as well as the launch of joint initiatives aimed at raising investment awareness and highlighting promising opportunities and products offered by both countries. The Egyptian government is working to restructure the EGX and convert it into a joint-stock company, in preparation for its potential listing on the bourse.
Key points
- The MoU aims to enhance market integration and boost investment flows between Egypt and the UAE.
- The EGX has seen significant growth, with its market capitalization growing 56.9 percent year-on-year in June 2026.
- The agreement covers exploring mechanisms to remove challenges related to cross-border trading channels and enable direct market access for investors in both countries.
