الهيئة العامة للرقابة المالية

Dr. Mohamed Farid:

• The acquisition is a direct outcome of FRA-led structural reforms and amended EGX listing rules.
• Unprecedented infrastructure development opened wider investment horizons for EGX transport stocks.
• The development of the Capital Market is consistent with the Egyptian state’s vision to support the private sector and enhance the overall business environment.
• We call upon companies to proceed with more merger and acquisition (M&A) deals in the coming period.
• The Capital Market serves as the main pathway for establishing a genuine middle class by enabling cumulative savings.
• The EGX is now a key platform supporting economic entities with broader financing and development opportunities.

Dr. Mohamed Farid, FRA Chairman delivered a keynote speech at EGX opening trading session today. The event, which was attended by several ministers and high-ranking officials, celebrated the successful completion of Egytrans’ acquisition of the National Company for Sea Transport and Services (NOSCO).

The event witnessed the participation of several prominent figures, including Lieutenant General Engineer Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport; and Hassan El Khatib ,Minister of Investment and Foreign Trade, Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, and Dr. Sherif Farouk , Minister of Supply and Internal Trade). Also in attendance were key financial sector leaders including Dr. Islam Azzam – EGX Chairman, Dr. Khaled Serry Seyam – MCDR Chairman, Mr. Ashraf Negm – Managing Director of the National Investment Bank. In addition to Dr. Hashem El Sayed – Assistant to the Prime Minister and CEO of the State-Owned Companies’ Unit, alongside Mr. Mohamed Sabry – Vice Chairman of the EGX, Mr. Maged Shawki – Chairman of Egytrans and numerous leaders from FRA and EGX.

FRA Chairman stressed that the acquisition of NOSCO by Egytrans is more than just an investment or takeover operation; it is clear evidence of the extensive efforts taken by the Financial Regulatory Authority and other relevant bodies to implement structural reforms that have successfully enhanced investment climate and overall business environment.

He further added that the deal serves as a prime example of the capital market’s growing role in boosting corporate expansion capabilities, improving competitiveness and facilitating entry into new growth phases. He concluded by noting that the market has become a pivotal platform for supporting economic entities and providing diverse avenues for financing and development.

Furthermore, the deal reflects the unprecedented development achieved in the transport, logistics, and storage sectors since 2014. This progress has significantly improved Egypt’s global competitiveness ranking and opened wider horizons for private sector expansion.

Dr. Farid commended the State for the unprecedented infrastructure boom achieved recently under H.E. Lieutenant General Kamel El Wazir’s leadership. He asserted that these projects are the cornerstone of the current renaissance in the transport and logistics sector, which has positively impacted the sector’s performance on the Egyptian Exchange.

He explained that the comprehensive development of road networks, ports and logistics zones has not only contributed to facilitating trade movement and improving the efficiency of supply chains, but it has also unlocked broader prospects for industrial and investment growth. This development has empowered companies to expand and elevate their competitive capabilities in both local and regional market.

FRA Chairman indicated that the acquisition is a direct result of efforts to develop and regulate the capital market’s listing rules. These efforts are aligned with the state’s direction to boost the private sector’s role, improve the ease of doing business, support more sustainable economic activities, and ensure that all segments of society benefit from the fruits of development.

Dr. Farid elaborated that the global economy’s rapid changes demand constant preparedness and flexible visions to secure the future of nations and companies. He affirmed that the capital market is now more than a trading platform. It is a comprehensive system that ensures stability, supports expansion and establishes strong principles of governance and transparency. This is in addition to its vital role in attracting investment and offering tax incentives to listed companies.

He further added that the capital market serves not only corporations but also acts as a primary tool for protecting citizens’ futures through gradual savings and disciplined investment. Citizens benefit from a wide array of investment instruments introduced by FRA, including equity, gold and real estate funds, Exchange-Traded Funds (ETFs), Private Equity and Venture Capital funds and Special Purpose Acquisition Companies (SPACs). All these tools are managed by licensed investment managers to ensure the highest levels of protection for these savings.

Dr. Farid highlighted the significant importance of increasing the number of listed companies, recognizing this as a key driver for market activation. He noted that the regulatory reforms implemented recently – including amendments to listing, offering and trading rules, as well as the development of an integrated digital infrastructure – are expected to attract more companies and further enhance market efficiency.

He also indicated that the coming period will witness the introduction of new mechanisms and instruments designed to boost liquidity and activity levels. These include financial derivatives, short selling and market maker activities.

FRA Chairman confirmed that the market’s performance over the recent period reflects the success of the taken efforts. The Exchange has registered a rise in market capitalization, a noticeable increase in the number of new investors and growth in the number of listed companies alongside an improvement in their market values, in addition to the evolution of trading volumes and values. He asserted that this success strengthens the capital market’s role in supporting economic growth, protecting savings, and enhancing sustainable development.

Concluding his remarks, Dr. Farid emphasized that the non-banking financial sector, spearheaded by the capital market, focuses on two vital objectives: first, financially empowering citizens through cumulative savings to secure their future; and second, cultivating a resilient middle class by securing Egyptian families. He stressed that the integration of all non-banking financial instruments ultimately serves one mission: delivering a more stable, secure and resilient life for every citizen.

At the conclusion of the event, Dr. Islam Azzam, EGX Chairman honored Dr. Mohamed Farid in recognition of his significant efforts in developing the capital market.