The Egypt Financial Regulatory Authority published opening remarks by Chair Islam Azzam signaling that a regulatory framework for short selling will be issued soon. Speaking at an Egyptian Exchange event, Azzam also outlined recent tax changes intended to support liquidity and long-term investment, including the abolition of capital gains tax and the introduction of a proportional stamp duty on listed securities transactions. The stamp duty is set at 0.5 per thousand for each buyer and seller, falling to 0.25 per thousand for each party on same-day transactions. Market makers are exempt to encourage liquidity provision. The package also provides qualifying companies that list shares at a fair value of at least EGP 50 billion with a 15% income tax reduction for three years from the offering, subject to specified conditions. A joint committee comprising the authority, the Egyptian Exchange and the Egyptian Tax Authority will address outstanding tax treatment issues, develop recommendations and guidance, and promote consistent procedures for securities and investment funds. The forthcoming short-selling framework forms part of broader work to diversify investment mechanisms, alongside activating market makers and developing the derivatives market launched on March 1.
Egypt Financial Regulatory Authority2026-08-03
Egypt Financial Regulatory Authority signals imminent short-selling framework and outlines capital market tax changes
The Egypt Financial Regulatory Authority signaled that it will soon issue a regulatory framework for short selling and reviewed recent capital market tax changes. These include replacing capital gains tax with a proportional stamp duty, exempting market makers and granting qualifying listings valued at least EGP 50 billion a three-year income tax reduction.