Egyptian Exchange Posted
The Egyptian Exchange (EGX) participated in the Annual Conference of Arab Federation of Capital Markets (AFCM), one of the biggest events of capital markets in the MENA region, hosted this year by Muscat Stock Exchange on May 9 – 10, 2023.
The conference aims to create a common ground for Arab capital markets that will foster integration and facilitate investments flow among these markets.
During this year’s edition, the conference discusses Environmental, Social, and Corporate Governance (ESG) guidelines and reporting, Islamic capital markets, financial technology, and carbon markets.
Rami El-Dokany, EGX’s Executive Chairman, participated, with a number of Arab exchanges and financial bodies heads, in ring-the-bell ceremony at Muscat Stock Exchange on the occasion of conference commencement this year in Muscat.
He also met, on the sidelines of the conference, with the head of Omani Investment Authority and discussed with him potential cooperation.
El-Dokany participated in the panel on carbon markets and trading. He explained the steps taken by EGX to establish a voluntary carbon market in Egypt to cater for Africa and Middle East, as well as the efforts undertaken by EGX and the regulators to create the appropriate legislative framework for activating this market.
He elaborated on the significance of organizing carbon markets in Arab region and Africa due to their potential growth opportunities. He said, “We need to create regulated markets for carbon credits and to create the necessary legislative frameworks for them. This will attract carbon credits’ trading from Over The Counter (OTC) to the regulated markets.” He added, “This will ensure certain accepted standards of transparency and disclosure which ultimately will lead to fair and efficient pricing of carbon credits.”
EGX Chairman explained some of the characteristics distinguishing carbon credits from other financial instruments such as they have a life cycle starting from the certificate issuance and going through several verification and validation steps through accredited international bodies, and ending with its registration and trading on the platforms. He also explained the costs associated with each phase. El-Dokany expressed the need to shorten the time and reduce the costs associated with each phase which will encourage companies to enter the more competitive and pricing efficient carbon market.
He stated that cooperation among all related parties is crucial to build a market that improves climate action and reduces emissions to build a sustainable future. Improving transparency, trust, and growth of carbon markets is a target we all should work on achieving.