Guide to investing on the Cairo Stock Exchange, Africa's oldest (founded 1883). EGX 30 performance, 47 top stocks, 7-8% average dividend yields, Egyptian pound risks, and how to buy Egyptian shares.
The Egyptian Exchange (EGX) is one of the world's oldest stock exchanges and the oldest in Africa. Founded in 1883 in Alexandria, it has established itself as a cornerstone of Middle Eastern and African financial markets. For investors seeking yield and diversification, Egyptian stocks offer a unique risk-return profile: high dividends, recognized emerging market status, and an economy undergoing profound structural transformation.
This guide covers everything you need to know to understand and invest Egypt stocks: indices, sectors, taxation, risks, and opportunities. Whether you are a seasoned emerging market investor or exploring African equities for the first time, understanding the EGX is essential for building a diversified international portfolio.
A History Spanning Over 140 Years
The Alexandria Stock Exchange opened its doors in 1883, making it not only the oldest exchange in Africa but one of the oldest in the entire world — predating many European bourses. The Cairo Stock Exchange followed in 1903. For much of the twentieth century, both operated independently, each serving distinct segments of the Egyptian economy. The two entities finally merged in 2008 under the unified name Egyptian Exchange (EGX), streamlining operations and modernizing market infrastructure.
Today, approximately 250 companies are listed on the EGX, with a total market capitalization of about $42.6 billion at the end of 2024 — making it the fourth-largest stock exchange in Africa after Johannesburg, Casablanca, and Lagos.
Despite its relatively modest size on a global scale, the EGX has seen a sharp increase in trading volumes: total shares traded rose from 266.6 billion units in 2024 to 473.2 billion in 2025, signaling renewed interest from both local and international investors. This surge in activity reflects growing confidence in Egypt's economic reforms and the appeal of its high-yield equity market.
Key Indices: EGX 30, EGX 70, and EGX 100
The EGX 30 index is the flagship benchmark of the Egyptian Exchange. It tracks the 30 most liquid stocks, weighted by free-float market capitalization. It serves as the primary barometer for measuring the health of the Egyptian market and is the index most frequently quoted by international financial media.
The EGX 70 follows the next 70 most active stocks (price-weighted), offering exposure to the mid-cap segment. The EGX 100 combines both indices, providing the broadest possible view of listed equities. For investors seeking exposure beyond the blue-chip names, the EGX 70 can uncover undervalued opportunities in smaller, fast-growing companies.
Recent performance has been remarkable: the EGX 30 gained nearly +40.2% in 2025 in local currency terms, closing around 41,690 points. By March 2026, it reached approximately 45,188 points, up +43.6% year-over-year. The rally has been broad-based, driven by banking, industrial, and consumer sectors. However, these gains must be carefully weighed against the depreciation of the Egyptian pound, which can significantly erode returns when converted to dollars or euros.
The banking and financial sector dominates the Egyptian market, with 17 banks and financial institutions among the 50 largest listed companies, representing approximately $13.5 billion in combined revenue. Key players include:
•Commercial International Bank (CIB) — the largest company by market cap at approximately EGP 412 billion ($4.7 billion). View CIB profile
•Elsewedy Electric — a leader in the electrical industry
•Talaat Moustafa Group — a real estate development giant
•Eastern Company — the tobacco monopoly, with a market cap of about EGP 111 billion
•Abu Qir Fertilizers — fertilizers sector, approximately EGP 109 billion
Other well-represented sectors include real estate (Palm Hills, Emaar Misr, SODIC), petrochemicals and fertilizers (MOPCO, Egyptalum), food and beverages, and energy/gas.
Dividends: Among the Highest Yields in Emerging Markets
Companies listed on the EGX traditionally pay generous dividends. The average market dividend yield was approximately 7-8% in early 2026, well above the emerging market average (typically 2-4%).
This dividend culture stems from high payout ratios — often 50 to 80% of net income — particularly in mature sectors such as banking, telecoms, and real estate.
For foreign investors, a 5% withholding tax applies to dividends. However, capital gains are tax-exempt (suspended regime), which represents a significant fiscal advantage.
Egypt has established a favorable framework for international investors:
•Foreign ownership: up to 100% of most listed companies (some restrictions for Sinai-related securities)
•Capital gains: tax-exempt (suspended regime)
•Dividends: 5% withholding tax for non-residents
•Transaction costs: moderate — stamp tax of approximately 0.125% plus minor exchange fees
The market is supervised by the Financial Regulatory Authority (FRA), which relaxed listing rules in 2021 (minimum free float reduced to 1%) and strengthened governance requirements in February 2026.
MSCI Emerging Markets Status
Egypt has been part of the MSCI Emerging Markets index since 2018, which attracts international asset managers who track this benchmark. This status ensures a steady flow of institutional capital into the Egyptian market and lends credibility in the eyes of global investors. Many emerging market ETFs and mutual funds are required to hold Egyptian equities as part of their mandate, providing a structural support for demand. Any future upgrade in Egypt's index weighting would trigger additional passive inflows, potentially boosting valuations across the board.
Currency Risk: Egyptian Pound (EGP) Devaluations
This is the primary risk for foreign investors. The Egyptian pound has suffered several major devaluations:
•2016: approximately 48% drop when the exchange rate was liberalized as a condition of the IMF program
•2022: approximately 34% depreciation over the year
•2022-2023: a total loss of approximately 50% between March 2022 and January 2023
These currency adjustments generate spectacular nominal gains on the EGX in Egyptian pounds but erode a significant portion of returns in foreign currency. In other words, a +40% gain in EGP may shrink to +10% or less in dollars or euros after conversion.
The IMF program ($12 billion in 2016, plus an additional $3 billion in 2023) mandates a durable float for the pound, meaning this currency risk will remain a persistent factor.
Trading Hours and Operations
•Trading days: Sunday to Thursday
•Main session: 10:00 AM to 2:15 PM (Cairo time)
•Closing auction: until 2:30 PM
•Settlement: T+2 (second business day)
•Currency: Egyptian Pound (EGP), some securities also available in USD
Economic Catalysts
Ras El-Hekma Mega-Project
In February 2024, Egypt signed a partnership with the UAE to develop the Ras al-Hekma peninsula (41,000 acres) in a mega-deal valued at approximately $150 billion. This tourism and residential infrastructure project could generate substantial economic benefits for Egypt and listed companies in the real estate and construction materials sectors.
Suez Canal
The Suez Canal remains a major source of foreign currency for Egypt. In 2023, it generated a record $10.25 billion in revenue. However, regional conflicts (Houthi attacks, Lebanon tensions) caused revenues to drop to $3.99 billion in 2024. The Canal's health directly influences Egypt's current account balance and investor confidence.
Tourism Boom
In 2024, international visitor spending reached EGP 726.9 billion (+36.1% compared to 2019). Improved air connectivity and stabilized tourist routes benefit listed hospitality and leisure companies.
Natural Gas and Energy
Since the discovery of the giant Zohr field, Egypt has become a net gas exporter once again. Gas revenues surged by 768% in 2021 to reach $3.9 billion. Agreements with Cyprus and Greece reinforce Egypt's role as a regional energy hub.
Privatizations and IPOs
The government is relaunching its privatization program: 13 new state-owned enterprises were added to the divestiture program in early 2026. Supermarket chain Gourmet is preparing an IPO filing. These moves will broaden the supply of listed securities and attract fresh capital.
Positioning in Africa and the Middle East
With a market capitalization of approximately $63 billion at the end of 2025, the EGX ranks fourth in Africa after the Johannesburg Stock Exchange ($1.46 trillion), Casablanca ($114 billion), and Lagos ($69 billion). In the MENA region, it remains modest compared to Gulf giants: Tadawul ($2,720 billion), UAE exchanges ($850 billion), and Qatar ($170 billion).
Nevertheless, its recent performance (+40% in 2025) and 7-8% dividend yield make it one of the most attractive emerging markets for income-seeking investors.
•Main index: EGX 30 (+40.2% in 2025 in local currency)
•Average dividend yield: 7-8%
•Capital gains tax: exempt (suspended)
•Dividend withholding tax: 5% for non-residents
•Trading days: Sunday to Thursday, 10:00-14:15 Cairo time
•Settlement: T+2
•MSCI status: Emerging Markets (since 2018)
•Top company: CIB (EGP 412 billion market cap)
Conclusion
The Egyptian Exchange offers a unique investment profile: some of the highest dividend yields among emerging markets, favorable capital gains taxation, and an economy supported by mega-projects like Ras El-Hekma and the Suez Canal. The market's long history, MSCI Emerging Markets inclusion, and regulatory reforms under the FRA all point to a maturing exchange with growing appeal for international capital.
Currency risk remains the primary challenge. The EGP's track record of sharp devaluations means that investors must actively manage their foreign exchange exposure and factor potential depreciation into return expectations. Geopolitical tensions in the region add another layer of uncertainty.
For informed investors who understand these dynamics and incorporate currency hedging or a long-term horizon into their strategy, the EGX deserves serious consideration as part of a diversified frontier and emerging markets portfolio. The combination of high income, capital gains tax exemption, and structural economic tailwinds makes Egyptian stocks a compelling proposition in the African investment landscape.
