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El-Halfawy: Rate cuts, stable currency fueled exceptional year for EGX

Businessmen Team banks-exchange 01 January 2026 02:24 PM
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El-Halfawy: Rate cuts, stable currency fueled exceptional year for EGX

The Egyptian Exchange (EGX) emerged as the top-performing market in the Middle East and North Africa in 2025, fueled by aggressive interest rate cuts and a stabilized currency, according to governance and compliance expert Mahmoud El-Halfawy.

Market capitalization surged by 829 billion Egyptian pounds over the year, closing at a record 2.998 trillion pounds.

El-Halfawy attributed the rally primarily to the Central Bank of Egypt’s (CBE) pivot toward monetary easing. In 2025, the CBE slashed interest rates by a total of 725 basis points across five meetings, tracking a significant cooling in inflation.

"Rate cuts directly stimulate investment in the stock market, real estate, and investment funds," El-Halfawy said. "This shift encouraged investors to move away from fixed-income assets and toward equities, pushing the indices to historic peaks."

The benchmark EGX30 index soared by 40.65 percent to finish the year at 41,828.97 points. Other indices saw even more dramatic growth: EGX70 (Small and Mid-cap) jumped 61.19 percent to 13,125.33 points, EGX100 (Broader Index) gained 55.34 percent to close at 17,425.88 points; and Tamayuz (SMEs) witnessed a massive 113.27 percent surge, closing at 21,087.55 points.

He noted that exchange rate stability and improved relations with both domestic and foreign investors were critical factors in the market’s performance.

Growth was particularly concentrated in the financial, industrial, telecommunications, and renewable energy sectors. El-Halfawy added that strong corporate earnings from large-cap firms further boosted investor confidence, cementing Egypt’s position as a regional investment hub.