Egypt's stock exchange is set to implement new tax reforms and incentives to support market growth in 2026, according to Omar Redwan, the exchange's chief. The focus will be on increasing Egypt's weight in international indices and leveraging approved tax reforms and benefits. One key reform is the elimination of capital gains tax on securities listed on the exchange.
The elimination of capital gains tax applies only to securities listed on the exchange, while unlisted securities remain subject to the tax. Redwan sees this as an incentive for companies to enter the market. He also noted that companies with a market capitalization exceeding 50 billion Egyptian pounds upon listing and starting trading will receive a three-year tax discount, renewable for another three years at the finance minister's discretion.
This tax incentive is expected to encourage mergers, acquisitions, and company growth. Redwan made these comments during a phone interview on a DMC program. The reforms aim to make the Egyptian market more attractive to investors and companies alike. By providing such incentives, the stock exchange hopes to see increased activity and growth.
Egypt recently received two awards related to average trading volumes and values for 2025. Redwan reported that since then, there has been a significant increase in investor numbers and trading averages. He predicts that 2026 trading volumes could reach two or three times the levels of the previous year.
The Egyptian government has been working on improving the business environment and attracting investment. These efforts include not only tax reforms but also other incentives to boost economic growth. The stock exchange's initiatives are part of a broader strategy to enhance the country's economic prospects.
Redwan's comments highlight the Egyptian stock exchange's proactive approach to fostering market growth. By implementing these reforms and incentives, the exchange aims to create a more favorable investment climate. This, in turn, is expected to attract more investors and companies to the market.
The Egyptian economy has been working to recover and grow, with various sectors playing crucial roles. The stock exchange's efforts are integral to this growth, providing a platform for companies to raise capital and for investors to participate in the economy. The coming year, 2026, will likely see the effects of these reforms and incentives.
Key points
- New tax reforms and incentives are being introduced to support the growth of the Egyptian stock market.
- Companies listing on the exchange with a market capitalization over 50 billion Egyptian pounds will be eligible for a tax discount.
- The reforms aim to double or triple trading volumes in 2026 compared to the previous year.
