Egypt’s stock exchange is preparing to introduce short-selling within weeks, as it pushes to deepen the market and fend off a possible downgrade in its global classification.
Omar Radwan, executive chairman of the Egyptian Exchange (EGX), said final system testing for short-selling was under way and the mechanism could launch “very soon”.
The move comes seven years after regulators first proposed short-selling in Egypt. The system will allow investors to borrow shares and sell them, while shareholders can earn returns by lending their holdings.
The EGX is also waiting for a decision from S&P Dow Jones Indices on whether Egypt should be downgraded from Emerging Market to Frontier Market status.
The consultation ended on 31 July, with a decision expected within months. Any downgrade would not take effect until September 2027.
Mr Radwan said the exchange had argued against a downgrade by pointing to stronger foreign reserves, improved access to foreign currency and reduced delays in repatriating funds. He said he had spoken to representatives of 17 institutions linked to the index ahead of the review.
The exchange also expects five or six of 20 state-owned companies with temporary listings to complete full IPOs within the next year.
Egypt is separately offering tax incentives to attract large listings, with companies valued above EGP15bn eligible for a 15% tax discount for three years.
The EGX is also expanding derivatives trading and exploring cross-listings with markets including Saudi Arabia.
Mr Radwan said his longer-term priority was deploying artificial intelligence across the exchange, including surveillance, disclosures and investor relations.