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Egypt financial market is one of the strongest markets in the region. The investment sector of Egypt has been facing a boom since 2005 when the trading made was about $1.2 billion. In 2006, the amount of investment was estimated to be around $6 billion. On the other hand, the foreign reserve of the country in 2003 was facing deficit but the government of the country had managed the situation well and today this sector is providing assurance to the country. At the same time, the private sector investment was encouraged; as a result, the scenario of the economic sector was totally changed.
Because of the improvement in the economic sector, the trade and commerce also performed well and the investors found it profitable to investment in stocks and bonds. Actually the positive attitude of the government has encouraged the investors to become optimistic. The optimism of the Egyptian investors has made the Egypt financial market a preferred option for investment. Because of the financial development the Cairo and Alexandria stock exchange has become one of the ten leading exchanges of the world and these exchanges are now a member of the World Federation of exchanges.
There are several reasons of the economic development of the country. The IMF provided huge help to the country. At the same time the Egyptian government also played a major part in the play. The government officials designed sound fiscal and monetary policies. The budgets were designed in such a manner that the deficits were changed into surplus. At the same time the adoption of market-oriented economy provoked the foreign investors to invest in the Egyptian markets.
At the same time the tourism sector boom and the Suez Canal taxes have added in the economic development of Egypt. The oil reserves of the country have played a major part in the development process. In addition to all these factors, the rise in the global oil prices added some extra flexibility in the economic progress of Egypt.
The economic reform has brought about a sea change in the financial sector of Egypt.