Working Papers

An Action Plan for Engendering Capital Market Growth in Egypt

Publication Number: ECESWP32-E

September, 1998

Author : Sherif Raafat

Type : Working Papers

Engendering capital market growth is essential in order to bring the Egyptian stock market out of its slump and ensure sustainable economic growth in Egypt. A short-term plan should revive domestic and international demand for shares by controlling the supply of financial securities and enhancing the quality of issues. Pricing of shares, improving market capitalization and liquidity, enhancing market depth and the developing debt market are features of a short-term action plan. For long-term capital market growth the basic foundations of growth must be improved, including the regulatory framework, human resources and the technological infrastructure of the market. It is necessary to foster an active secondary market and develop a culture of shareholders. Establishing Cairo as the financial center of the Middle East and Africa will build on Egypt’s existing resources in the service sector and ensure future growth.