This update is intended for general guidance only. It should not be relied upon as legal advice.
Trading, Clearing and Settlement for Small & Mid Cap Companies
According to Article one of Decree 738 of 2011 issued by The Egyptian Financial Supervisory Authority, companies listed on the small and mid cap market (NILEX) at the Egyptian Exchange shall be traded in a daily one-hour trading session with the same applicable trading mechanism as that of the main market. The price limits are allowed to fluctuate 5% above or below the open price; the closing price is calculated as a volume weighted average price at the end of each trading session, provided a minimum volume traded of 100 shares is concluded with a minimum value of EGP 20,000 or its equivalent in other currencies. Article two provides that settlement of small and mid cap stocks shall take place on (T+2). Article three states that the Exchange shall put in place all necessary procedures for proper surveillance and monitoring of all transactions executed for the small and mid cap companies, without prejudice to the surveillance and market control rules applied in the main market.
Increase of Energy Prices on Energy Intensive Industries The Minister of Finance announced that starting from January 2012, Egypt would implement a decision to cut down energy subsidies and increase prices for energy-intensive factories such as those producing ceramics, steel, cement, and / or fertilizers. “Gas and electricity prices for energy-intensive factories will be increased by $1, which is 33% of the current price,” said the Minister. For more information, check: http://www.mof.gov.eg/English/MOFNews/Press/Pages/ Budgetcutstotargetsubsidiestoenergyintensiveindustries,saysminister.aspx
36,000 New Investor in EGX in 2011 Egyptian Exchange (EGX) said in its annual report that the year 2011 has witnessed the joining of about 36,000 new investors of different nationalities to the Egyptian money market, compared to about 35,000 investors in the previous year. The report indicated that such increase took place despite the difficult economic conditions in Egypt during the past year.
Importation of Clothes, Furniture & Textile Decree No. 626 of 2011 was issued by the Minister of Industry and Foreign Trade obliging importers of clothes, furniture, textile, carpets, and floor covering to obtain a certificate of Inspection and Review stating that these products are in accordance with the Egyptian specifications. The Certificate can be issued from an ILAC accredited entity, or from an Egyptian entity accredited by the Minister of Industry and Foreign Trade. The Certificate needs to list the products’ amount, value, country of manufacture, name and address of manufacturer, trademarks, and importer’s name.
The Egyptian Non-oil Foreign Trade Digest The Ministry of Industry and Foreign Trade issued a Non-oil Foreign Trade Digest for the year 2011. The Digest clarifies the annual export and import sectors, the main export markets for the year 2011, trade volume with the different markets in the world, and detailed statics about exports and imports in different sectors. To review the Digest, check the following link: http://www.goeic.gov.eg/downloadsfiles/Digest%20December%202011.pdf 2