A CALL TO INVESTMENT BANKS

The Egyptian economy is improving. EGX is changing.

This is increasingly looking like a paradigm shift.

Egypt’s net international reserves reached an all-time high of US$56.3bn in July 2026. Remittances reached US$43.1bn in Jul–May FY2025/26, +31.2% YoY, after calendar-year 2025 had already set an all-time record of US$41.5bn. Egypt welcomed a record ~19 million tourists in 2025.

The turnaround in the external position has been remarkable. Egypt’s net foreign assets have swung by roughly US$58bn, from around –US$29bn at the trough to approximately +US$29.5bn.

Sovereign risk has repriced dramatically: Egypt’s 5-year CDS recently traded around 265–270 bps, a multi-year low and a fraction of crisis-era levels.

The IMF programme is approaching its scheduled conclusion in December 2026 from a substantially stronger macroeconomic position, with the Government currently indicating that it does not plan to seek a follow-on programme.

The currency has also passed a serious stress test. Despite major geopolitical shocks, substantial portfolio outflows and significant exchange-rate volatility, Egypt maintained a functioning FX market, record reserves and positive net foreign assets. Importantly, MSCI now confirms there is no outstanding FX backlog for foreign investors.

The carry trade is back in force, with the IMF reporting record non-resident inflows into Egypt’s domestic debt market.

GDP growth reached 4.99% in Q3 FY2025/26 and surpassed 5% recently. Inflation has fallen dramatically from its crisis peaks.

Confidence is returning.

But perhaps the most interesting transformation is happening in the Egyptian Exchange itself.

Listed market capitalisation has increased from approximately EGP2.17tn at end-2024 to around EGP4.3tn by mid August 2026 — an increase of almost 100%.

The EGX30 gained 40.6% in 2025 and another 33.5% by mid-August 2026.

Listed-equity trading reached approximately EGP579bn in the first four months of 2026, +62% YoY, with daily equity turnover exceeding EGP18bn in recent days compared to an average of around EGP5bn in 2025.

And most importantly, the investor base is exploding.

More than 420,000 new investors entered EGX in the first seven and half months of 2026 alone. The whole of 2025 witnessed 299,000 new investors.

Meanwhile, FRA, EGX, the Cabinet, the economic group of ministers, and Parliament continue to overhaul the legal, regulatory, tax and technological infrastructure supporting the market.

The latest tax reforms could be transformational.

Capital-gains taxation on listed securities was replaced by a simpler stamp-tax regime. A change that was anticipated for 12 years. The standard rate is now only 0.05% per side, falling to 0.025% for same-day transactions. For non-residents, transaction duties were reduced by 60%, from 0.125% to 0.05%.

And mega-listings with a market capitalization of at least EGP50bn can qualify for a 15% income-tax deduction for three years, subject to the applicable conditions.

The Government is targeting additional state listings, while more public and private IPOs are expected.

There is liquidity.

There are hundreds of thousands of new investors.

There are record reserves, remittances and tourism.

There is a functioning FX market.

There are substantial foreign portfolio inflows.

There is stronger economic growth and significantly lower inflation than at the peak of the crisis.

There are tax incentives, regulatory reforms and technological reforms.

There is demand.

The missing component is investment banking supply.

Egypt remains strikingly underserved relative to the size of the opportunity.

So this is an immediate Call to Action.

EGX is hungry for IPOs. Now.

Where is the promotion action?

Where is the underwriting action?

Where are the international investment banks?

Where are the local investment banks?

Where are the new investment banks?

If you are there, it is time to wake up.

Hundreds of thousands of newly added investors, rapidly expanding liquidity and an equity market worth around EGP4.3trillion are waiting for the next generation of IPOs.

Every piece of the puzzle is increasingly falling into place.

Now the investment banking industry needs to do its part.

By: Omar Radwan,CFA
EGX chairman