• Market capitalization of the Arab Capital Markets is $ 1.1 billion and Egypt represents 5% of them
• The Union of Arab Securities Authorities “UASA” honors Sherif Samy for his role during the UASA’s presidency
• Sherif Samy calls upon the Arab capital markets to adopt green bond principles
• The Union of Arab Securities Authorities “UASA” introduces a study on regulating tender offers and acquisitions
Sherif Samy – EFSA’s Chairman asserted that the Arab capital markets are facing the same challenges , and most of the countries in the region were affected by the political conditions and fighting against terrorism, in addition to the global economic challenges, especially that the price of oil was fallen and the US interest rate was raised more than once. He pointed out that the Arab financial markets’ regulators supervising these markets are keen on enhancing their capabilities and achieving harmony and convergence of legislations in a manner that promotes the flow of funds and cross listing.
Sherif Samy – as being the Chairman of the Union of Arab Securities Authorities – welcomed holding the UASA’s 11th annual board meeting in Tunis. In his speech at the opening session, Sherif Samy noted that worldwide financial regulators are interested in studying behavioral economics for the Stock Exchange’s clients and pursuing opportunities and challenges introduced by the rapid progress of Financial Information Technology or (Fintech).
He pointed to the importance of adopting green bond principles to provide financial tools and funding sources for environmental programs or what is known as green bonds and green investment funds. He explained that this type of financing tools related to eco-friendly projects reduce carbon emissions and energy consumption and use renewable energy sources such as wind, solar and others.
Al Shazly Alayany – governor of the Central Bank of Tunisia attended the meetings and presented the economic trends of Tunisia and its tendency to strengthen its financial sector. Also, Mr. Jalil Tarif – Secretary General of the Union introduced what has been achieved from the last meeting that was held in Cairo last March.
Sherif Samy noted that the meeting discussed the first Arab study of its kind which was prepared by the Union on regulating tender offers of listed companies. He added that the study included a review of legislations and regulations in several Arab countries, followed by a comparison on corresponding International controls that are applied in the European Union, the United States and in a number of Asian countries.
He noted that the tender offers – either optional or mandatory – is a controversial issue in any active market and requires a lot of rules to regulate it especially those rules that are concerned with disclosure and responsibility of the Board of Directors in all stages of the tender offers and cases that can be excluded from submitting mandatory tender offers. This regulation aims primarily to protect minority shareholders and small shareholders.
He added that a guide on corporate governance rules was presented and it was prepared by a committee that included representatives of a number of Arab Authorities. The said committee set a comparison on the legislations that are applied in the region in addition to the best international practices in this regard.
On the sidelines of the meeting, EFSA’s Chairman noted that market capitalization of the Arab capital markets stood at 1.1 trillion dollars by the end of 2016, witnessing a growth by 3.7% from the previous year. He pointed out that the market value of the listed stocks at the Egyptian Stock Exchange represented 5% of the total Arab market and it came in fifth place.
Also, Fadel Abdul Kafi – Minister of Development, Investment and International Cooperation in Tunisia has participated in part of the event, where he delivered a speech on economic reform efforts and preparing a plan to offer number of public companies at the Stock Exchange.
Heads of Arab Securities Authorities honored Sherif Samy as it was the end of his presidency of the Union and the presidency goes to Tunisia Capital Markets Authority.
The Union of Arab Securities Authorities “UASA” was established in 2007 in Abu Dhabi. Currently, it includes in its membership 15 Arab Authorities and three associate members and an observer (the Arab Monetary Fund). For the first time, its annual meeting was held in Cairo last March.
The Union seeks to improve the legislative and regulatory level of the Arab Capital Markets in order to achieve fairness, efficiency and transparency. Also, the Union unifies its efforts to reach effective levels of control over the transactions in the Arab Stock Exchanges and joint cooperation and coordination between members of the Union to achieve maximum harmony and compatibility in laws and regulations. The Union also aims to overcome difficulties related to investment in Arab Stock Markets ,expands its base, diversifies its tools, deepens the culture of investment and promotes disclosure, transparency and corporate governance concepts in addition to applying the best international standards and practices.