Ahly sports club to establish joint stock football company

Egypt's largest sports club Ahly plans to establish a joint-stock football company making it the country's first independent club in order to meet FIFA standards for professional football teams on budget transparency and financial sustainability.

Ahly club, which was founded in 1907, is owned by the state and hence cannot be traded, board member Mohamed Abdel-Wahab told Ahram Online.

"This is why we are creating a new football company to become a subsidiary of the club," he explained.

Cairo-based investment bank CI Capital will arrange the Initial Public Offering (IPO), board member Emad Wahid told Ahram Online.

The IPO will only be possible after the new parliament ratifies a new sports bill, he added.

A draft sports law was prepared by the ministry of youth and sports late last year. Article 43 allows sports associations to establish companies and raise capital on the stock exchange.