Egypt has led the Middle Eastern and North African (MENA) countries in the World Bank’s index for rights of shareholders trading in the stock market, announced Chairman of the Egyptian Financial Regulatory Authority (FRA) Mohamed Omran.
For the fourth consecutive year, Egypt has managed to achieve significant improvement in the index of protecting small shareholders rights, after it jumped 15 ranks in 2019, occupying the 57th rank of 190.
Omran pointed out that Egypt's rank on the “protecting rights of small shareholders” resulted in topping four important sub-indicators. In “shareholder equity”, MENA region received only 3.2, while Egypt was awarded the top result.
The report pointed out that Egypt scored six out of the seven scores in the sub-index of "scope of ownership and control", while the assessment of the MENA region was 3.6.
Egypt also received 6 out of 7 on the “corporate transparency” sub-index, while the MENA region scored 3.5, in addition to scoring 8 out of 10 on “disclosure” sub-index, while MENA scored 6.4 in total.
Omran pointed out that the results achieved by Egypt in the four sub-indicators were not distinct compared to the MENA region only, but exceeded that distinction when compared to the results of Organization for Economic Co-operation and Development (OECD) for high-income economies.
Highest results of OECD of high-income economies reached 5.7 in corporate transparency, 4.5 in ownership and control, 4.7 in shareholder equity, and 6.5 in disclosure.
He stressed that the progress in protecting right of small shareholders contributed to the advancement of the overall ranking of Egypt to occupy 114th place out of 190 countries.
Omran pointed out that this progress is the result of cooperation and coordination between ministries and concerned authorities in the country and the success of the task team responsible for communication with the team of the World Bank.