CAIRO: Egypt introduced exceptional measures on Sunday to make it easier for listed companies to buy treasury stocks, a move aimed at supporting the stock market following a sharp fall in world markets in the past few days.
Under the new rules announced by the financial regulator, companies will be temporarily allowed to notify the stock exchange on the day they plan to purchase treasury stocks instead of having to give three days’ notice.
That would encourage companies to buy treasury stocks, which are shares that companies buy back for a period of time and re-sell them later.
“[The change] comes in light of the latest events and developments that the global financial markets have faced and the wave of sharp declines that Arab and foreign exchanges have witnessed,” the regulator said in a statement.
Global stock markets fell sharply on Friday, bringing total losses for the week to $5 trillion on growing fears about the economic consequences of the coronavirus outbreak.
Egypt’s blue-chip index fell again on Sunday, opening down 3.6%.
Stock exchanges in the Gulf also plunged in early trade led by Kuwait and Dubai.
Egypt issues new rules on buying treasury stocks in bid to support market
https://arab.news/mbyut
Egypt issues new rules on buying treasury stocks in bid to support market
- The notice period for companies before buying treasury stocks will be shortened
- Global stock markets fell sharply on Friday, bringing total losses for the week to $5 trillion
Lebanese social entrepreneur Omar Itani recognized by Schwab Foundation
- FabricAID co-founder among 21 global recipients recognized for social innovation
DAVOS: Lebanon’s Omar Itani is one of 21 recipients of the Social Entrepreneurs and Innovators of the Year Award by the Schwab Foundation for Social Entrepreneurship.
Itani is the co-founder of social enterprise FabricAID, which aims to “eradicate symptoms of poverty” by collecting and sanitizing secondhand clothing before placing items in stores in “extremely marginalized areas,” he told Arab News on the sidelines of the World Economic Forum in Davos, Switzerland.
With prices ranging from $0.25 to $4, the goal is for people to have a “dignified shopping experience” at affordable prices, he added.
FabricAID operates a network of clothing collection bins across key locations in Lebanon and Jordan, allowing people to donate pre-loved items. The garments are cleaned and sorted before being sold through the organization’s stores, while items that cannot be resold due to damage or heavy wear are repurposed for other uses, including corporate merchandise.
Since its launch, FabricAID has sold more than 1 million items, reached 200,000 beneficiaries and is preparing to expand into the Egyptian market.
Amid uncertainty in the Middle East, Itani advised young entrepreneurs to reframe challenges as opportunities.
“In Lebanon and the Arab world, we complain a lot,” he said. Understandably so, as “there are a lot of issues” in the region, resulting in people feeling frustrated and wanting to move away. But, he added, “a good portion of the challenges” facing the Middle East are “great economic and commercial opportunities.”
Over the past year, social innovators raised a combined $970 million in funding and secured a further $89 million in non-cash contributions, according to the Schwab Foundation’s recent report, “Built to Last: Social Innovation in Transition.”
This is particularly significant in an environment of geopolitical uncertainty and at a time when 82 percent report being affected by shrinking resources, triggering delays in program rollout (70 percent) and disruptions to scaling plans (72 percent).
Francois Bonnici, director of the Schwab Foundation for Social Entrepreneurship and a member of the World Economic Forum’s Executive Committee, said: “The next decade must move the models of social innovation decisively from the margins to the mainstream, transforming not only markets but mindsets.”
Award recipients take part in a structured three-year engagement with the Schwab Foundation, after which they join its global network as lifelong members. The program connects social entrepreneurs with international peers, collaborative initiatives, and capacity-building support aimed at strengthening and scaling their work.
