Egyptian stock exchange to launch new Sharia-compliant index by first half of 2024

The Egyptian Exchange (EGX) is expected to launch a new Sharia-compliant index by the first half of 2024, according to a statement by EGX Chairman Ahmed El Sheikh. For inclusion in this index, companies are required to ensure their activities, as well as their financial and accounting conditions, comply with the provisions of Islamic Sharia law. The selection process will be overseen by the Sharia Supervision Committee of the Financial Regulation Authority. EGX is currently in discussions with up to four medium-sized private sector companies about a potential listing on the new index, although specific company names or sectors were not revealed. This announcement reinforces previous statements from former EGX Chairman Rami El Dokani, who indicated that the index launch was planned for October or November. EGX plans to leverage social media campaigns to support stock market investment, aiming to grow new market trading and attract new investor segments. EGX’s benchmark index EGX 30 has already seen notable growth since the start of 2023, with a 58% increase reported as of Thursday trading.