REGULATORS: structuring Egypt’s first ETF

Author: Gemma Varriale | Published: 27 May 2014

The launch of Egypt’s first domestically listed exchange traded fund (ETF) is imminent. Following an eight-year struggle to bring it to market, its architects are hopeful that it will attract new investment to fund Egypt’s post-revolution comeback.

Beltone Financial, a Cairo-based financial services group, was granted the first licence to create an ETF in Egypt on April 28. The fund, known as XT-Misr ETF, is expected to debut in the next two weeks.

Egypt’s economy has been battered by more than three years of political and economic turmoil following the toppling of former president Hosni Mubarak in February 2011. The new investment vehicle is a key part of efforts to rebuild the country’s economy and restore investor confidence.

As the population goes to the polls for presidential elections, and with parliamentary elections expected later this year, Aladdin Saba, the chairman of Beltone Financial, said the launch...