Egyptian Stock Exchange Staggers: Billions in Losses Amid Fears of "War Economy"
The exodus of foreign investments from the Egyptian market indicates a decline in confidence in the government's ability to manage crises, which may lead to long-term negative consequences on Egypt's
October 15, 2024, 1:49 am

Egyptian Stock Exchange Staggers: Billions in Losses Amid Fears of

البورصة المصرية \ تعبيرية

The Egyptian Stock Exchange has witnessed sharp fluctuations in recent days, affected by geopolitical tensions in the region and controversial government statements. The market incurred heavy losses amounting to 60 billion pounds (equivalent to 1.2 billion dollars) during the Thursday and Sunday sessions, before recovering part of its losses valued at 17 billion pounds in Monday's session.

Egyptian Prime Minister Mostafa Madbouly had stirred up a storm in economic circles with his statements about the possibility of implementing a "war economy" if regional conditions worsen. These statements, according to market experts, shook the confidence of local and foreign investors, pushing the latter to reduce their investments in the Egyptian market.

Mohamed Hassan, Managing Director of Alpha Financial Investments, explained that geopolitical tensions led to the exit of large foreign investments from the Egyptian capital market. He also pointed out that "violent" selling operations due to forced stock selling (margin calls) exacerbated the losses.

Despite the gloomy picture, some experts express cautious optimism about the market's future. Mohamed Kamal, a board member of the Egyptian Securities Federation, affirmed his confidence in the stock exchange's ability to recover its losses in the future, driven by positive news for the Egyptian economy and the restoration of foreign institutions' confidence.

It's worth noting that FTSE Russell has kept the Egyptian stock exchange within the secondary emerging markets category in its latest periodic review, which may contribute to boosting investor confidence in the medium term.

However, challenges remain for the Egyptian economy. Rising global oil prices and increasing inflationary pressures may negatively affect the country's economic performance. The continued state of uncertainty in the region may also push more foreign investors to reduce their investments in the Egyptian market.

Under these circumstances, it appears that the Egyptian government is required to adopt clearer and more effective strategies to restore investor confidence and stimulate economic growth. Enhancing transparency in official statements and avoiding alarming signals to markets may be necessary to ensure stock market stability and attract foreign investments in the future.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.