Egypt and Abu Dhabi exchanges sign deal to link markets

Summary

• EGX and ADX signed a memorandum to integrate markets and open cross-border trading channels.
• The deal covers dual listings, mutual broker recognition and shared market data infrastructure.
• Integration would widen the institutional investor base and deepen liquidity in both markets.

The latest

The Egyptian Exchange and the Abu Dhabi Securities Exchange have signed a strategic memorandum of understanding to integrate their markets, develop financial services and lift investment flows between Egypt and the United Arab Emirates. The agreement was signed at the annual conference of the Arab Capital Markets Federation in Abu Dhabi by EGX Chairman Omar Radwan and ADX Group Chief Executive Abdulla Al Nuaimi.

Details

• The framework: According to the EGX statement, the memorandum establishes operational and regulatory frameworks for market integration and cross-border connectivity. The two exchanges did not announce a timetable for implementation or name the regulatory authorities that would need to approve the measures under study.
• Cross-border access: Among the areas under study is the opening of cross-border trading channels giving investors in each market direct access to the other. The exchanges are also examining mutual recognition of member brokerage firms, which would let licensed brokers operate across both markets without separate authorisation.
• The technology: The partnership would draw on advanced digital systems, including the Tabadul platform, to enable remote trading and remote onboarding of members. The exchanges also plan to deploy financial technology solutions and share market data to design new financial products aimed at international funds.
• Dual listings: The memorandum lays technical and legislative groundwork for dual listing and trading of companies and investment instruments across Egyptian and Emirati markets. According to the statement, the objective is to widen the institutional investor base and raise liquidity available to issuers in both jurisdictions.
• Egypt's numbers: Radwan said trading values on the Egyptian Exchange reached EGP 17.9 trillion in 2026 through September, while market capitalisation rose above EGP 4 trillion. He made the disclosure during a conference panel titled "Markets Under Pressure" devoted to exchanges absorbing geopolitical shocks.
• The pitch: Radwan said the smooth movement of entry, exit and profit repatriation for foreign investors has reinforced the confidence of international funds in the Egyptian market. He framed the agreement as part of an effort to attract major institutional investment to Egypt through regional and international partnerships.
• The classification: Radwan said Egypt's emerging market classification by global index providers, including MSCI, S&P Dow Jones and FTSE Russell, reflects the success of continuing market development work. Emerging market status determines which passive funds are permitted to allocate capital to listed Egyptian equities.

Background

The Arab Capital Markets Federation groups exchanges and regulators across the region, and its annual conference in Abu Dhabi served as the venue for the signing. Neither exchange has previously announced an operational linkage of this scope.

Between the lines

The memorandum is a framework rather than a live mechanism: cross-border access, broker recognition and dual listing are each described as areas under study, and none carries an announced timetable. The emphasis on profit repatriation and index classification signals the target audience is foreign institutional money, with Cairo positioning Gulf capital as the nearest pool of it.

What's next

Watch for regulatory approvals from authorities in both countries, any announced timetable for cross-border access or broker recognition, and the first company to pursue a dual listing across the Egyptian and Emirati markets.

Source: Daily News Egypt via ZAWYA, citing an EGX statement