Egypt looking into new measures to encourage IPOs and push privatization program
According to Finance Minister Ahmed Kouchouk, the government is actively considering a package of measures to attract more companies to list on the stock market, deepen market liquidity, and broaden investor participation.
Prime Minister Mostafa Madbouly met Tuesday with newly appointed Egyptian Exchange (EGX) Chairperson Islam Azzam, marking Azzam’s first day in office.
The high-level meeting, also attended by Finance Minister Kouchouk and Financial Regulatory Authority (FRA) head Mohamed Farid, underscored the government’s commitment to strengthening the stock market as a driver of economic growth and investment.
Among the proposals under review is a full tax exemption on IPO proceeds—part of a wider initiative expected to be finalized by month’s end, ahead of a new phase in Egypt’s privatization program.
The gathering focused on key strategies to enhance market activity, including fresh incentives aimed at encouraging major initial public offerings (IPOs) on the EGX.
Speaking on his vision for the EGX, Azzam said the bourse would follow a two-pronged strategy: expanding financial instruments—including the introduction of derivatives—and improving market efficiency by implementing the long-awaited market maker mechanism.
He emphasized that trading operations would remain fully governed by market forces, and pledged to maintain an open dialogue with stakeholders across the financial ecosystem.
FRA Chairperson Mohamed Farid highlighted ongoing efforts to align the regulatory environment with market development goals. He pointed to financial technology and sustainable finance as central themes for enhancing the non-banking financial sector’s contribution to the economy.
Madbouly reaffirmed the state’s support for modernizing the capital market, identifying it as a cornerstone in Egypt’s broader economic reform agenda. The government, he noted, views an active, efficient exchange as essential to increasing private sector involvement and attracting both domestic and foreign capital.