The Egyptian Exchange (EGX) witnessed a significant surge in trading values during the second quarter of 2026, with transactions exceeding EGP 6.4 trillion. This represents a substantial increase of 78.3% compared to the same period last year. According to Islam Azzam, Chairman of the Financial Regulatory Authority (FRA), the EGX also saw a notable rise in new investor registrations, with over 171,000 individuals signing up.
Azzam made these remarks during a meeting with Jalil Tarif, Secretary General of the Union of Arab Securities Authorities (UASA). The discussion focused on strengthening cooperation in areas such as awareness, training, and capacity building. The FRA is set to officially launch short selling within weeks, pending the completion of the central lending system and technical integration with brokerage firms.
The FRA has established a regulatory framework for short selling under Board Decision No. 155 of 2026. The rules aim to ensure transparency, governance, and protection of all parties involved, in line with international best practices. This move is part of a broader effort to modernize Egypt's capital-market instruments, following the launch of the financial derivatives market in March.
The introduction of short selling is expected to provide more diverse investment options and improve market efficiency. The FRA has also allowed the establishment of hedge funds, enabling them to conduct short-selling transactions and invest in financial derivatives. Azzam emphasized that the current modernization drive aims to expand and deepen the market, increase liquidity, and provide more investment opportunities.
The FRA is considering additional incentives to encourage institutional investment, including the market-making mechanism. This mechanism is expected to boost trading and liquidity, and the latest tax package exempts it from stamp tax. The measures come as several major state-owned companies prepare to list and offer shares on the Egyptian Exchange.
The meeting with UASA also covered cooperation through the Financial Services Institute and the Regional Centre for Sustainable Finance and Carbon Markets. The two sides reviewed training programs implemented under a memorandum of understanding, focusing on technical expertise and capacity building in green financial instruments and sustainable finance.
Egypt has completed the regulatory framework for its voluntary carbon market, which is set to become the first regulated and supervised market of its kind in Africa. Tarif praised the FRA's efforts to develop Egypt's non-bank financial sector and expand training and awareness programs. The two sides also discussed cooperation on combating manipulation and fraud, and preventing money laundering and terrorism financing.
Key points
- Egypt's EGX trading values surged 78.3% year-over-year in 2Q 2026, reaching EGP 6.4 trillion.
- The FRA is set to launch short selling within weeks, pending technical integration and training for market participants.
- Egypt has completed the regulatory framework for its voluntary carbon market, set to become the first regulated market in Africa.
