• EGX is consulting on a revised trading schedule, extending the close to 3:00 PM and adjusting the opening to increase overlap with Gulf markets.

• The reform targets Arab institutional investors by aligning Cairo more closely with Saudi and UAE trading windows.

• Regulators see longer hours as a prerequisite for absorbing large IPOs expected from the state-led privatisation pipeline.

• Smaller brokers warn that higher fixed costs may dilute liquidity rather than expand it, accelerating sector consolidation.

The Egyptian Exchange (EGX) has launched a market-wide consultation on a proposed adjustment to its trading schedule, which would extend the session to 3:00 PM and recalibrate the opening time to increase regional market overlap. The proposal, confirmed by EGX Chairman Islam Azzam, reflects a strategic effort to reposition Cairo within the Middle East’s increasingly integrated capital markets.

At present, the EGX’s relatively short trading window limits real-time interaction with major Gulf exchanges. By lengthening the session and improving alignment with the Saudi Exchange (Tadawul) and the Dubai Financial Market (DFM), regulators aim to remove a structural constraint that has long affected Arab institutional participation. Market participants note that many regional funds manage Egyptian positions alongside Gulf portfolios, making synchronised trading hours a practical necessity rather than a cosmetic reform.

Officials argue that greater overlap could enhance liquidity by enabling arbitrage strategies, improving price discovery and allowing foreign desks to execute regional asset allocation decisions simultaneously. The reform also fits squarely within the government’s broader objective of attracting sustained foreign currency inflows and reinforcing the stock market's role as a gateway for external capital.

Beyond near-term liquidity considerations, the timing of the proposal is closely linked to Egypt’s privatisation agenda. Regulatory sources indicate that the current session length may be insufficient to handle the trading volumes expected from a series of large state-linked IPOs planned from 2026 onward. While authorities have stopped short of formally tying the reform to specific listings, the expectation of sizeable offerings in banking, energy and logistics has sharpened the focus on market capacity and resilience.

The brokerage community, however, remains divided. An exchange-led consultation suggests a narrow majority of firms and listed companies support the change. Opposition is concentrated among small and mid-sized brokers, who argue that longer hours raise staffing and operational costs without guaranteeing higher turnover. Some warn of liquidity fragmentation, in which trading activity is spread thinly over a longer day, potentially increasing volatility rather than reducing it.

By contrast, larger institutions with automated trading systems are more supportive, viewing the reform as a necessary step toward regional competitiveness. Several market observers note that similar adjustments in other emerging markets preceded deeper foreign participation and, in some cases, index upgrades.

The EGX has indicated that any approved change would be phased in gradually, with close attention paid to settlement processes and the structure of the closing auction. As Egypt’s equity market continues to act as a partial hedge against inflation for domestic investors, policymakers face a delicate balancing act: extending the market’s reach without undermining its depth. Whether longer trading hours will unlock new liquidity pools or redistribute existing flows remains the central question facing Cairo’s financial community.

Idriss Linge