EGX Chairman Issues Decree No.(36) For The Year 2026 To Regulate The Work Of The Nominated Advisors & Enhance The Sustainability Of The SME's Market
As part of The Egyptian Exchange’s (EGX) strategic initiative to enhance the efficiency and long-term sustainability of the SME market, EGX Executive Chairman, Dr. Islam Azzam, issued Decree No. (36) of 2026, governing the activities of Nominated Advisors, thereby repealing and replacing Decree No. (168) of 2012 and its subsequent amendments. The new framework represents a substantive regulatory advancement aimed at elevating listing standards, reinforcing investor protection, and strengthening the ongoing viability and compliance of listed companies.
The new decision represents a remarkable shift in the regulatory philosophy governing Nominated Advisors, whereby their role is no longer confined to supporting issuers in meeting initial listing requirements. Instead, it expands to encompass ongoing post-listing oversight, ensuring sustained compliance with market regulations, promoting higher standards of corporate governance and institutional discipline, and aligning the SME market framework with international best practices.
The decision introduces a number of substantive amendments relative to the previous framework, including the following key enhancements:
- Expansion of the scope of responsibilities of Nominated Advisors to include ongoing post-listing monitoring and follow-up of listed companies.
- Strengthening competency, qualification, and technical expertise requirements for Nominated Advisors, with the objective of elevating the quality and depth of advisory services provided to issuers.
- Establishment of a clearer accountability framework and well-defined regulatory obligations, thereby reinforcing market discipline and compliance standards.
- Introduction of structured mechanisms for periodic evaluation and regulatory supervision of Nominated Advisors’ performance.
- Streamlining selected regulatory procedures, while preserving an effective and robust supervisory framework.
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Expansion of the categories of entities eligible to operate as Nominated Advisors, most notably to include:- The Micro, Small and Medium Enterprises Development Authority (MSMEDA).- Companies licensed to provide financing to SMEs.
This decision forms part of EGX’s ongoing efforts to enhance the market’s regulatory architecture and reinforce its role in supporting sustainable economic growth. It also aims to deepen the integration of the capital market with financing and development institutions, thereby strengthening EGX’s function as a long-term financing ecosystem rather than merely a listing venue. In parallel, the framework supports more robust and accurate company valuation, enhances issuers’ sustainability and growth capacity, and elevates the overall quality of listed companies - ultimately expanding opportunities for long-term growth and market resilience.