CAIRO – Egypt will be joining the JP Morgan bond index for emerging markets by the end of January 2022, the Finance Ministry said Sunday.
Egypt is eligible to join the index with an estimated weight of 1.85 percent with 14 government bonds worth a total value of about 26 billion dollars, said Minister Mohamed Maeit.
This, he added, should encourage big investment funds and foreign businessmen to put their money into Egyptian debt instruments in the local currency.
Joining the JP Morgan index sends a message about the confidence of foreign investors in the strength of the Egyptian economy, Maeit said.
He made it clear that 90 percent of the investors surveyed in consultations supported Egypt’s inclusion.
In April, JP Morgan announced that it had placed Egypt and Ukraine under review for inclusion in the EM index on the back of their steady improvement in liquidity and access to onshore government bond markets on the foreign investor level.
Egypt was removed from the index in 2011 after failing to meet the requirements of the index.
The inclusion will make Egypt the second country in the Middle East and Africa to join the index, besides South Africa.
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