CAIRO:The Egyptian Stock Exchange approved Tuesday a license for establishing the first Exchange Trade Funds (ETFs) certificates, through the benchmark EGX 30, at a total value of EGP 10 million, according to the bourse statement Wednesday.
“Listing of the ETFs is an important tool for investors’ financial portfolio management, and it has been the investors’ essential demand to diversify their investments in the Egyptian market,” Stock Market chairperson Mohamed Omran said in the statement Wednesday.
“I believe that ETFs certificates could be a financial instrument that contributes to boost the Egyptian market, step towards deepening trade in the stock market and a transition from the traditional image of the limited market to a modern and broader one that copes with the latest financial developments and complies with the requirements of investors,” he continued.
On Dec. 17, Omran said that the ETFs certificates will start trading in January 2015. In April, the EGX granted Beltone Financial Holding Company a license to launch the first ETF through XT-MISR.
ETFs were introduced to Egypt two decades ago as their numbers hit 3,600 trading funds worldwide at the moment; one-a third of which is in the United States while other funds are in 61 countries with investment value worth more than $ 2.5 trillion, the statement said.