Arab Finance: FTSE Russell will remove Egypt from its watch list for a potential downgrade to Frontier market status, retaining its Secondary Emerging classification after the market met the minimum securities count requirement.

For its part, the Egyptian Exchange (EGX) welcomed the move as recognition of the market's and its listed companies' resilience.

According to the EGX, three Egyptian companies now meet the mid-cap category requirements. Talaat Moustafa Group Holding (TMG Holding) and Telecom Egypt have joined Commercial International Bank (CIB) in meeting those standards, strengthening Egypt’s representation in emerging market indices and broadening its potential investor base.

EGX Chairman Omar Radwan said that Egypt's removal from the watch list is a renewed vote of confidence in the market’s ability to withstand challenges, pressures, and global fluctuations.

He said a financial market’s strength should be assessed through its ability to remain efficient and attractive during difficult periods, as well as its capacity to recover and adapt.

The challenges Egypt’s market has faced over recent years provided a practical test of those capabilities, Radwan noted. He likened the experience to a real-world crisis management simulation, highlighting adaptability as a key consideration for international investors assessing a market’s attractiveness and ability to absorb shocks.

Investors also look at whether listed companies can sustain operations, adjust to changing conditions, and continue growing under pressure, he mentioned.

Radwan also pointed to Egypt’s diverse base of listed businesses, spanning different sizes, sectors, and business models, with a growing number meeting or exceeding international standards. These companies already possess capabilities that can support regional and global competitiveness, but need greater visibility and transparency to help international investors recognize their opportunities.

The removal from the watch list comes as a milestone in the development of Egypt’s capital market, while stressing that further work remains, he said. Priorities include deepening the market, broadening the investor base, improving competitiveness, and increasing the international visibility of Egyptian companies.

The EGX will also continue developing financial products and services, technological infrastructure, and trading and disclosure mechanisms, he added.