During the Egypt Competitiveness Conference, Dr. Islam Azzam, Executive Chairman of the Egyptian Exchange (EGX), stated that the stock exchange is one of the key pillars for enhancing the competitiveness of the national economy, particularly in light of rapid global economic changes and the growing importance of institutional efficiency and financial market depth in attracting investment and achieving sustainable growth.

The conference was organized by the Faculty of Commerce, Cairo University, under the chairmanship of Prof. Dr. Lobna Mohamed Farid, Dean of the Faculty of Commerce. It was attended by Prof. Dr. Amira Fouad Mahran, Vice Dean for Postgraduate Studies and Research and Vice President of the Conference, as well as Prof. Dr. Mahmoud El-Said, Vice President of Cairo University for Postgraduate Studies and Scientific Research.

Dr. Azzam explained that the concept of national competitiveness is no longer based solely on natural resources or geographic location; rather, it now depends primarily on the quality of the legislative framework, institutional efficiency, and the levels of transparency and governance, in addition to the state’s ability to mobilize savings and channel them toward productive investment. This role is fulfilled by The Egyptian Exchange (EGX), which serves as a primary platform for financing and investment.

He noted that the performance of the EGX during 2025 reflects significant progress in market efficiency. The main equally weighted index, EGX30, recorded an annual return of 40.65%, while the EGX70, equal weighted index, achieved returns of 61.19%. Also, EGX100, equal weighted index, recorded returns of 55.34%. These results indicate broad-based improvements across various segments of the market.

He further added that market capitalization increased by the end of 2025 with an annual growth rate of 38.2% compared to 2024. This growth reflects rising investor confidence in the Egyptian market and underscores its role in maximizing the value of listed companies.

Regarding the expansion of the investor base, EGX Chairman clarified that during 2025 the market witnessed the registration of approximately 299.1 thousand new investors, including both individuals and institutions. The number of individual investors increased by 30%, with the 18—45 age group representing 79% of total new individual investors, reflecting the success of efforts aimed at promoting financial literacy and enhancing youth participation in the capital market.

He also highlighted that the participation of institutional investors increased to approximately 32% of total market transactions, contributing to greater market depth and stability and supporting long-term investment. He emphasized that EGX is implementing a comprehensive development plan to enhance market competitiveness, including the gradual and disciplined launch of a financial derivatives market. This initiative will begin with futures contracts on the main indices, providing effective risk management tools, improving pricing efficiency, and increasing liquidity, in line with international best practices.

Dr. Azzam further pointed to the activation of advanced trading mechanisms, including securities lending and borrowing (short selling), which contributes to a better balance between supply and demand, enhances pricing efficiency, and increases liquidity. In addition, he referred to the market maker mechanism, which aims to ensure continuous bid and ask pricing and reduce price gaps, particularly in less actively traded stocks.

The EGX Chairman emphasized the vital role of universities and academic institutions in supporting the state’s competitiveness by preparing qualified professionals capable of understanding modern financial market mechanisms. He affirmed that EGX is keen to cooperate with Cairo University and other educational institutions to promote financial literacy, build capacities, and strengthen the link between academic learning and practical application.

In concluding his remarks, he stressed that enhancing Egypt’s competitiveness requires a strong, developed, and inclusive financial market operating within a disciplined institutional framework and integrated with broader economic policies to support the achievement of sustainable economic development.