EGX Posts Strong Year as State IPOs Set to Support 2026

Egypt’s stock market closed 2025 on a strong note, delivering one of its best performances in decades, with sharp gains across major indices, rising market capitalization, and improved corporate profitability, despite a limited number of new listings, particularly from state-owned companies.

Market analysts expect the positive momentum to carry into 2026, supported by renewed government plans to relaunch state IPOs, growing interest from regional investment funds, and continued macroeconomic stability.

The benchmark EGX30 index surged nearly 40% in 2025, surpassing 41,000 points for the first time in its history, compared with around 30,000 points at the start of the year. Meanwhile, the EGX70 jumped 61%, while the broader EGX100 gained 55%.

Market capitalization rose sharply to 2.97 trillion Egyptian pounds by the close of trading on December 30, 2025, up from 2.19 trillion pounds in the first trading session of the year, according to Egyptian Exchange data.

“2025 was a year of harvest for the Egyptian Exchange,” said Rania Yacoub, Chairwoman of Thruway Securities. “Returns were among the highest seen in decades, whether at the index level or across individual stocks.”

Echoing that view, Ibrahim El-Nemr, Head of Technical Analysis at Naïm Holding, said 2025 is set to become the strongest year in the exchange’s history in terms of trading volumes and values.

“Over nearly 12 months, the market closed higher at the end of every single month, an unprecedented performance,” El-Nemr said.

Analysts attribute the sustained rally largely to improving economic stability following a series of reforms implemented over the past two years. The March 2024 devaluation of the Egyptian pound helped eliminate the parallel market, stabilize the exchange rate, and gradually ease inflationary pressures.

That stability translated into stronger corporate earnings and higher dividend distributions, which in turn supported equity market performance, Yacoub said.

Lower interest rates also played a key role. In 2025, the Central Bank of Egypt cut interest rates by a cumulative 725 basis points, reducing the appeal of traditional savings instruments and pushing investors toward equities.

Despite external challenges, including a decline in Suez Canal revenues, Egypt’s economy proved resilient, El-Nemr noted, reinforcing confidence in the stock market.

Still, the rally was not without drawbacks. Only about five new companies were listed on the Egyptian Exchange in 2025, with several firms merely transferring from the secondary market to the main board.

“The market was waiting for the government IPO program,” Yacoub said. “It would have attracted stronger interest from foreign investors and regional funds.”

Planned listings of state-owned companies, including some affiliated with the military, have been delayed multiple times, limiting the depth and liquidity of the market.

“Despite the strong performance in 2025, relatively low asset valuations and modest trading volumes remain key challenges,” she added.

Looking ahead, analysts are optimistic that 2026 will bring renewed momentum, particularly if long-awaited government offerings move forward.

In a recent statement, Egypt’s Cabinet said the coming year would see additional IPOs on the stock exchange, supported by improving investor sentiment and a broader range of targeted sectors. Several state-owned companies are currently being prepared for listing ahead of public offerings.

El-Nemr expects the market’s positive trend to continue in 2026, driven by rising corporate profits and the government IPO program.

Yacoub also pointed to a potential liquidity boost early next year, as high-yield bank certificates offering 27% returns mature in January 2026. These certificates attracted around 1.3 trillion pounds during their issuance period.

“As these certificates mature, a large pool of liquidity will re-enter the market,” she said. “With bank yields now declining, part of that money is likely to flow into alternative investments, including equities.”

If government listings materialize as planned, analysts say 2026 could mark another pivotal year for Egypt’s capital markets, one that builds on the exceptional gains of 2025 while broadening the market’s investor base and depth.