EGX, Saudi Tadawul sign MoU: Egypt and Saudi Arabia are taking important steps to strengthen their ties and enhance joint cooperation. Once again, in the interest of warmer relations, the Egyptian Exchange (EGX) and Saudi Exchange (Tadawul Group) have signed a memorandum of Understanding (MoU) to enhance joint cooperation efforts. This move is set to be yet another game changer for both countries which will immensely boost their economic prospects.
Egyptian (EGX) & Saudi stock (Tadawul) markets sign MoU
As per a report, The Egyptian Exchange (EGX) and Saudi Exchange (Tadawul Group) recently signed a memorandum of Understanding (MoU) to enhance joint cooperation efforts.
The memorandum aims to develop joint cooperation in identifying the most important developments and mechanisms that the two markets are working on, particularly in the fields of technology, financial technology, and the joint exchange of experiences.
Ramy El Dokany, Chairman of the EGX, welcomed the cooperation with the Saudi Tadawul Group, emphasizing the need for developing human resources in the two markets. The exchange of experiences on sustainability, environmental, social, and corporate governance falls within the areas of cooperation included in the MoU. The MoU also covers ways of cooperation in the areas of education and informing investors about the role and importance of financial markets in national economies.
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On the other hand, Khalid Abdullah Al-Hussan, the Chief Executive Officer of Saudi Tadawul Group, expressed his support for the efforts to develop an advanced, diversified, and integrated financial market that provides rewarding opportunities for regional and international investors, in line with the objectives of the financial sector development program within Saudi Vision 2030.”
Furthermore, the memorandum will give Egyptian and Saudi companies access to each other’s markets, allowing them to raise funds from the open market by getting themselves listed in the stock markets. Listing is highly advantageous for a company, as it allows the company to issue fresh share capital to raise funds for growth and expansion. In turn, this will help the Egyptian and Saudi companies expand their businesses. Retail investors also can benefit immensely when companies list, as a listing of securities allows individuals to invest in businesses with the potential for wealth creation.
Moreover, the listing will enhance the goodwill and reputation of companies in each other’s countries, as it will create a public profile for the company and can play a crucial role in enhancing its goodwill. This will significantly boost the business environment in these two countries, ultimately leading to an improved overall economic condition.
Egypt-Saudi Arabia’s cooperation for their mutual benefit is not new. The two countries have also been cooperating in the area of EVs etc. We previously told our readers that Turkey, Saudi Arabia, and Egypt are building factories for Battery Powered Vehicles.
Read More: Egypt, Turkey, and Saudi Arabia join hands to demolish West’s EV monopoly
Therefore, the signing of the MoU between the Egyptian (EGX) and Saudi stock markets (Tadawul group) will further strengthen the joint cooperation between the two countries, especially in the fields of technology and financial technology. Moving forward, this will create a more stable economic environment and increase opportunities for growth and development in the region.
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