Egyptian brokerage firms aim to expand in Gulf markets

Brokerage and securities trading companies seek to penetrate the Arab Gulf countries, following the momentum witnessed by those markets in terms of the increase in trading and the steady increase in the number of offerings, in contrast to the decline in the number of offerings in the Egyptian Exchange.

The Gulf Cooperation Council markets accounted for 21% of global subscriptions in 2022, compared to only 2% in 2021, and last year witnessed a strong start in the Abu Dhabi Securities Exchange, so that the market value increased significantly in the market with the best performance in the region after its index rose 68%. Last year, the UAE markets witnessed a series of IPOs that were the strongest in the history of financial markets in the region.

These include Abu Dhabi Ports, Dubai Electricity and Water Authority (DEWA), Borouge, GFH Financial Group, Invictus Investment, TECOM Group, Union Coop, the Saudi Agricultural and Livestock Investment Company (SALIC), Barajeel Engineering Consultants, Bayanat, and Taaleem.

Since the beginning of this year, the UAE markets have witnessed record demand and great demand by investors, sovereign funds, and local, regional and global investment portfolios. and “Al-Ansari” for financial services, about $280bn, while the four offerings collected revenues of more than $3.95bn.

Egyptian companies are seeking to take advantage of this momentum, especially with its absence in the Egyptian market, which has not witnessed initial offerings other than a direct listing of “Lotus for Investment and Agricultural Development” since the beginning of this year, and the search for new markets has become an imperative necessity to increase profit margins.