FRA Chairman:
- Given the current geopolitical landscape, it is incredibly challenging to succeed alone. Collaboration and integration are imperative to navigate these challenges and build a better future for everyone.
- By integrating Arab Exchanges, we can increase their significance in global markets, making them more attractive to international investment funds seeking to allocate capital.
- Establishing a unified legislative, regulatory and operational framework for carbon markets could enhance their effectiveness and impact.
- Egypt is implementing reforms that leverage fintech and AI to enhance Exchanges’ role in achieving sustainable development goals.
- Developing innovative financing tools and solutions can increase Exchanges’ contribution to economic growth and boost savings rates, which are essential for investment and employment.
Dr. Mohamed Farid – FRA Chairman delivers Keynote Speech at the 7th edition of the ‘Portfolio Egypt 2024’ Conference under the theme “Arab Stock Markets: Integration or Competition”.
The conference was attended by distinguished guests, including Dr. Mahmoud Mohieddin, United Nations Special Envoy on Financing the 2030 Sustainable Development , Ahmed Kouchouk, Minister of Finance of Egypt, Ahmed Sheikh, EGX Chairman and Mr. Rami El-Dokany, Secretary General of Arab Federation of Capital Markets (AFCM).
FRA Chairman highlighted the crucial role of exchanges in mobilizing savings, increasing national savings rates and efficiently allocating capital to investment projects across various economic and productive sectors.
This, in turn, contributes to job creation, economic activity, and overall development.
Dr. Farid emphasized that capital markets, equipped with advanced technology and flexible, sophisticated regulations, are well positioned to support governments in achieving their economic and social development goals. In addition, he noted that in the face of current geopolitical tensions and turmoil, individual success is increasingly challenging, emphasizing the critical importance of regional integration as a means of achieving shared goals and building a better future for Arab societies.
Dr. Farid asserted that integrating Arab Exchanges would enhance their collective weight in international markets, making them more attractive to global investment funds.
To facilitate this, a thorough review of the legislative and regulatory frameworks governing securities listing, trading and offerings in Arab capital markets is necessary to boost intra-regional securities trade.
He added that FRA has continued to advocate for the consolidation of legislative, regulatory, and executive frameworks for carbon markets.
This would enhance the effectiveness and impact of these markets in addressing climate change.
Dr. Farid pointed out that FRA is also implementing a reform agenda that leverages fintech and AI to empower exchanges and contribute to sustainable development goals.
These initiatives aim to increase exchanges’ contribution to economic growth and boost savings rates, which are essential for investment and employment.
FRA Chairman stressed the need for a unified Arab vision to address current challenges and enhance the global competitiveness of Arab exchanges in the face of regional geopolitical tensions. He emphasized that exchanges can serve as accurate reflections of their economies.
Dr. Farid explained that unintended integration arises from the ongoing efforts of exchanges to expand their market size relative to GDP.
Additionally, exchanges actively work to attract new investors who seek investment opportunities in other regional markets, fostering a form of unintended integration.
This is particularly evident when neighboring markets offer more attractive investment prospects.
Dr. Farid emphasized that intentional competition among Arab Exchanges is a positive development, encouraging more companies to list on their platforms through various incentives, such as reduced listing costs.
Moreover, Dr. Farid noted that the most effective way to integrate Arab Exchanges is through the establishment of a unified Arab Exchange. He pointed out that the idea of a unified Arab Stock Exchange was first proposed in 2004, under the leadership of Chairman of the Arab Federation of Exchanges and Chairman of Union of Arab Securities Authorities “UASA” – Dr. Sa’faq Al-Rakibi. However, Dr. Farid emphasized that there is still potential for creating a unified Arab Stock Exchange through cooperative efforts. This could be achieved by establishing common rules and supporting technologies for existing trading systems.
He asserted that centralized platform enables collective trading of securities across integrated markets. Participating Exchanges shall agree on setting listing and trading rules and define brokers’ qualifications.
On the other hand, FRA Chairman noted that carbon markets offer a promising avenue for collaboration among Arab Exchanges, especially in light of the global imperative to reduce carbon emissions.
He highlighted Egypt’s pioneering role in launching the first regulated voluntary carbon market and carbon market regulator in Africa last August.
The conference featured a high-level meeting attended by key representatives from leading Arab Exchanges, including Abu Dhabi Securities Exchange, Qatar Stock Exchange, Amman Stock Exchange and the Egyptian Stock Exchange.
Last modified: October 16, 2024