The Egyptian Stock Exchange has been removed from FTSE Russell's watch list, a decision that experts say is a vote of international confidence in the market. This move comes nearly a year after Egypt was placed on the watch list due to concerns that it might be downgraded to a frontier market. FTSE Russell cited improvements in liquidity and an increase in the number of eligible Egyptian securities as reasons for the decision.
According to FTSE Russell, Egypt's market was initially placed on the watch list in September 2025 due to a decline in the number of eligible companies. The firm's rules require at least two qualifying shares for a market to maintain its emerging market status. However, with three Egyptian companies now classified as mid-cap and three as small-cap, the market has met the necessary requirements.
Experts say that this decision will have a positive impact on the Egyptian Stock Exchange. Mohamed Ata, a financial markets expert, notes that the move will boost confidence among investors and support the market's current growth. He adds that the government's planned privatization program will further enhance the market's depth and attractiveness.
The removal from the watch list is seen as a significant development for the Egyptian Stock Exchange. Hossam Eid, another financial markets expert, says that it demonstrates the market's resilience and ability to adapt to global challenges. He notes that the decision will encourage more international investors to participate in the market, although the impact may not be immediate.
The Egyptian Stock Exchange's main index has shown resilience in recent sessions. Hanan Ramses, a financial markets expert, says that the FTSE Russell decision has helped to stabilize the index, despite concerns about low liquidity in the market. She adds that new listings and improved liquidity will be crucial in sustaining the market's growth.
FTSE Russell reviews its market classifications regularly, with the next review scheduled for April 2027. The firm's classifications are based on a range of criteria, including market accessibility, liquidity, and the number of listed securities. Egypt's removal from the watch list is seen as a positive step, but experts say that continued efforts are needed to deepen the market and enhance its competitiveness.
Omar Radwan, head of the Egyptian Stock Exchange, says that the removal from the watch list is a testament to the market's resilience and ability to adapt to global challenges. He adds that the exchange will continue to work on developing the market, improving transparency, and increasing its international profile.
Key points
- The Egyptian Stock Exchange has been removed from FTSE Russell's watch list and reaffirmed as a secondary emerging market.
- The decision cites improvements in liquidity and an increase in the number of eligible Egyptian securities.
- Experts say that the move will boost confidence among investors and support the market's current growth.
