EGYPT Egyptian Economy: Egypt's economy depends mainly on agriculture, media, petroleum exports, exports of natural gas, and

tourism. there are also more than three million Egyptians working abroad, mainly in Saudi Arabia, the Persian Gulf and Europe. The completion of the Aswan High Dam in 1970 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population, limited arable land, and dependence on the Nile all continue to overtax resources and stress the economy. The government has invested in communications and physical infrastructure. Egypt has received U.S. foreign aid (since 1979, an average of $2.2 billion per year) and is the third-largest recipient of such funds from the United States following the Iraq war. Its main revenues however come from tourism as well as traffic that goes through the Suez Canal. Egypt has a developed energy market based on coal, oil, natural gas, and hydro power. Substantial coal deposits are in the northeast Sinai, and are mined at the rate of about 600,000 metric tons (590,000 long tons; 660,000 short tons) per year. Oil and gas are produced in the western desert regions, the Gulf of Suez, and the Nile Delta. Egypt has huge reserves of gas, estimated at 1,940 cubic kilometers (470 cu mi), and LNG is exported to many countries. Economic conditions have started to improve considerably after a period of stagnation from the adoption of more liberal economic policies by the Government, as well as increased revenues from tourism and a booming stock market. In its annual report, the International Monetary Fund (IMF) has rated Egypt as one of the top countries in the world undertaking economic reforms.[109] Some major economic reforms taken by the new government since 2003 include a dramatic slashing of customs and tariffs. A new taxation law implemented in 2005 decreased corporate taxes from 40% to the current 20%, resulting in a stated 100% increase in tax revenue by the year 2006. Foreign direct investment (FDI) into Egypt has increased considerably in the past few years, exceeding $6 billion in 2006, due to the recent economic liberalization and privatization measures taken by minister of investment Mahmoud Mohieddin. Although one of the main obstacles still facing the Egyptian economy is the trickle down of the wealth to the average population, many Egyptians criticize their Government for higher prices of basic goods while their standards of living or purchasing power remains relatively stagnant. Corruption is often cited by Egyptians as the main impediment to further economic growth.[110][111][112] The Government promises major reconstruction of the country's infrastructure, using money paid for the newly acquired third mobile license ($3 billion) by Etisalat Egypt's most prominent multinational companies are the Orascom Group and Raya Contact Center. The IT sector has expanded rapidly in the past few years, with many start-ups selling outsourcing services to North America and Europe, operating with companies such as Microsoft,

Oracle and other major corporations, as well as many small and medium enterprises. Some of these companies are the Xceed Contact Center, Raya, E Group Connections and C3. The sector has been stimulated by new Egyptian entrepreneurs with Government encouragement. An estimated 2.7 million Egyptians abroad contribute actively to the development of their country through remittances (US$ 7.8 billion in 2009), as well as circulation of human and social capital and investment. Egyptian society is moderately unequal in terms of income distribution, with an estimated "35 to 40%" of Egypt's population earning less than the equivalent of $2 a day, while only around 23% may be considered wealthy.

THE EGYPTIAN STOCK EXCHANGE Mission and Vision EGX Vision: To be a World-Class, Egypt-based Exchange: the Premier Capital Market in the Middle East & North Africa Region that best serves its stakeholders. EGX Mission: The mission of EGX is to operate and develop a high quality market for the benefits of its Egyptian and international clients. EGX will serve and empower its customers by providing top notch market technology, innovative products, fair, transparent and efficient market. EGX Values: EGX system of values have a common denomination of ethics practiced with all its stakeholders ,customers, members, issuers, managers, employees, regulators, the international and local investment communities. The values comprise the following:

Customers (issuers, members, and investors) come first. Just and equitable business environment. High standards of integrity and the highest ethical standards from our employees and market participants. We regulate our market in accordance with international best practices.

Continuous learning and employee training enable EGX to better serve its customers. Our business, mission and values are comprehended by our employees. Continuously respond to the changing needs of internal and external environments.

History: The Egyptian Exchange was formerly known as the Cairo and Alexandria Stock Exchange (CASE). In 2009, the CASE 30 Index (made up of the 30 largest companies being traded) changed its name to the EGX 30 Index. In 2011 the EGX 20 Index, composed of the twenty most active and liquid stocks on the Egyptian Exchange, was launched. The Alexandria Stock Exchange was officially established in 1883, with Cairo following in 1903. Both exchanges were very active in the 1940s, and the combined Egyptian Stock Exchange ranked fifth in the world. The central planning and socialist policies adopted in the mid-1950s led to the exchange becoming dormant between 1961 and 1992. In the 1990s, the Egyptian government's restructuring and economic reform programme resulted in the revival of the Egyptian stock market, and a major change in the organization of the Cairo and Alexandria stock exchanges took place in January 1997 with the election of a new board of directors and the establishment of a number of board committees. Sherif Raafat, former chairman of the board of directors, sought to modernize the exchange by:

Creating a coherent organization structure with a clear division of authority and responsibilities; Deciding to install a new state-of-the-art trading, clearing and settling system conforming to international standards (in May 1998 a contract was signed with EFA Software Ltd., a Canadian company, to this end); Developing new membership and trading rules, as well as arbitration and dispute resolution procedures; Planning the improvement of the clearing, settlement and payment systems

Licensed Members Firms: No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Company Name A.T. Brokerage Abu Dhabi Securities Brokerage Acumen Securities (S.A.E) Agyad Stock Brokers Al Ahram Stock Exchange Securities Brokers Al Amalka for Stock Dealing Al Arabia Securities Brokerage NBK Capital Securities Egypt SAE Al Madina Stock Brokers Company Al Manar for Stock Exchange Al Noran Securities & Brokerage Al Omana B.K Al Mottaheden Al Rowad for Securities Brokerage Al Shourouk Brokerage No. 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Company Name Golden Hand for Securities Brokerage Golden Share Securities Grand Investment Securities Guarantee Co. for Brokerage Exchange H.A. Brokerage HC Brokerage Helwan Brokerage Co. Hermes Securities Brokerage Honest Brokerage & Book Keeping Horas Co. for Brokerage E.S.C Horizon Securities Brokerage Company HSBC Securities Egypt S.A.E Ifa Securities Brokerage International Brokerage Group International for Securities Jazira Securities Brokerage Leaders Securities Lepon Securities Brokers Luxor Securities Brokerage Co. Maadi Co. for Stock Dealing Mahrosa Securities and Trading Mashreq Trade Masters Securities

Alexandria Securities Brokerage 90 Alfa Brokerage Alhmd Stock Brokerage Alhelal Alsaudi Securities & Brokerage Aliaa Stock Brokerage House Aljouhara Alsaudi for Securities & Brokerage Aman for Securities Co. Arab African International Securities Arab Finance 91 92 93 94 95 96 97 98

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Arabeya Online Securities Bab El-Mlouk for Securities Brokerage Bankers Group Baraka secutities Beltone Arabia Securities Beltone Securities Brokerage Blom Egypt Securities Brokers Securities Cairo Capital Securities Cairo International for Securities Exchange Cairo National Co. for Securities Negotiation Cairo Stock Brokerage Co Capital Securities Brokerage City Stars for Brokerage City Trade Securities & Brokerage Commercial International Brokerage company (CIBC) Continental for Securities Trading Correct Line Brokerage Securities & Stock Exchange Counsel Inc. Rasmala Egypt Securities Mubasher For Securities Dynamic Securities Trading Economic Group Egypt & Middle East Brokerage Company Egypt Brokerage - inertia Egypt Stocks Securities and Brokerage Egyptian Arabian Company (E A C)Securities Brokerage

99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125

Mediterranean for Brokerage Mega Investment Securities Metro Brokerage Mina Company Stock Exchange Brokers Miracle for Securities Mirage Brokerage Naeem Brokerage Namaa Securities Brokerage Co National Securities New Brent Brokerage Okaz Stockbrokers & Investment Consultants Optima Securities Brokerage Osool Esb for Securities Brokerage Pharaonic Brokerage Company Pharos Securities Pioneers Securities Premiere Securities Prime Securities Brokerage Prizma Securities Profit Securities Brokerage Pyramids Capital Regent Securities Safir for Stock Brokers Samba Tadawol Misr Brokerage Saudi Egyptian Co. for Securities Brokerage Shuaa Securities Sigma Securities Brokerage

51 52 53 54 55 56 57 58 59 60 62 63 64 65 66 67 68 69 70 71 72 73 74 75

Egyptian Emirates Brokerage Egyptian Group for Securities Egyptian Kuwaiti Securities El Alamia for Brokerage El Dawlia for Securities Brokerage El Fateh Stock Brokers El Giza for Securities Trading El Horreya Securities El Khair Financial Securities Corporation El Khalegya ETrade Egypt Securities Brokerage El Marwa Brokerage El Orouba Securities Brokerage Arqaam Securities Brokerage El Tadamoun El Arabi Brokerage Company Elkarma Securities Brokerage El-Karnak Stocks Brokerage El-Mokattam Securities Brokerage El-Safa Securities Brokerage Financial Brokerage Group First Stock Brokerage Global Capital Securities Global Investment House Securities Golden Way Securities

126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149

Solidaire Securities Brokerage Standard for Securities Strategic Securities Group Swiss Group Takamol Brokerage Co. Team for Securities Trade The Financial Arabian for Securities Brokerage The Roots Co. for Stock Brokerage Three Way Brokerage Tiba Brokerage & Bookkeeping Top for Brokerage Trend for Securities Triple A Securities Co. Tropicana for Stock Exchange Tycoon United Brokerage Co. Universal Securities Brokerage Venex Group for Securities Wallstreet Securities Brokerage Watania Stock Brokers Watheeqa Brokerage Wedian Securities Brokerage Yasmine Brokerage Royal Securities Brokerage

INDICES EGX 30 INDEX: EGX 30 index, previously named CASE 30 Index, is designed and calculated by EGX. EGX started disseminating its index on 2 February 2003 via data vendors, its publications, web site, newspapers etc. The start date of the index was on 2/1/1998 with a base value of 1000 points. EGX 30 index value is calculated in local currency terms and denominated in US dollars since 1998. EGX started publishing its dollar denominated index on 1st of March 2009. EGX 30 index includes the top 30 companies in terms of liquidity and activity. EGX 30 Index is weighted by market capitalization and adjusted by the free float. Adjusted Market capitalization of a listed company is the number of its listed shares multiplied by the closing price of that company multiplied by the percent of freely floated shares. For a company to be included in EGX 30 index, it must have at least 15% free float. This ensures market participants that the index constituents truly represent actively traded companies and that the index is a good and reputable barometer for the Egyptian market. Sample Size: EGX 30 index includes top 30 companies in terms of liquidity and activity. Index Calculation Methodology: Detailed Calculation of EGX 30 Index Adjusted Market Capitalization Weighted Methodology for calculating EGX 30 Index: The formula used for calculating EGX 30 is straightforward. The daily index value is calculated by dividing the adjusted market value (Last closing price * number of listed shares * percent of free float) of all constituent companies by a divisor. Adjusted Market Value is synonymous to Adjusted Market Capitalization.

Index Value (in EGP) = Adjusted Market Value of constituents / Companies Divisor

EGX Index Value (in US Dollars) is calculated after adjusting for the exchange rate between the Egyptian pound and the US dollar rate at the end of each day. 8

Divisor: The divisor is a factor that converts adjusted market capitalization of constituent companies to the index level. It is derived at the starting point of the index (Base date) by dividing the adjusted market capitalization by an arbitrary number or Multiplier. For example, if one wanted the starting point for the index to be 1, one would divide the adjusted market capitalization by itself.

For EGX 30 in local currency as well as EGX 30 in dollar terms, the indices were set at 1,000 on its start date, one would then set the divisor at 1/1000 of the adjusted market capitalization.

- Steps to calculate the divisor at the base date: Step 1: Calculate the adjusted market capitalization of constituent companies at the starting date. It is equal to the sum of closing price multiplied by listed shares of constituent companies times the percent of free float at the starting date.

Step 2: Assume that we will set the starting value of index at 1000. Step 3: Calculate index divisor on the starting date to as follows:

Index Divisor at to = Adjusted Market Value / Index value to = 1000

EGX 20 CAPPED INDEX: Capped Index is designed to capture the performance of the most active 20 companies in terms of market capitalization and liquidity, capping the weight of any constituent to a maximum of 10%. The index is designed to measure the performance of the market in accordance with the set rules for mutual funds as stated in Article 149 of the executive Regulations of the Capital Market Law 95 of 1992, which stipulates that Any Fund shall not invest in the securities of a single company more than 10% of its assets, nor to exceed 15% of the securities issued by such company. Sample Size: 20 companies Index Calculation Methodology:

EGX 70 INDEX: EGX introduced a new price index; EGX 70 Price Index, on 1st of March 2009, which tracks the performance of the 70 active companies, after excluding the 30 most active constituentcompanies of EGX 30 Index. EGX 70 index measures the change in the companies' closing prices, without being weighted by the market capitalization, and was retroactively computed as of 1 January 2008. EGX 70 Index Calculation Methodology: The index is calculated according to the following formula: The sum of closing prices is calculated according to the Volumes Weighted by Average Price (VWAP) method. Divisor The divisor is a factor that converts the sum of the closing prices of constituent companies to the index level. It is derived at the starting point of the index (base date) by dividing the sum of the closing prices by an arbitrary number or Multiplier (for example, setting the index at 1000 on its start date). The divisor is calculated on the starting date t0 as follows: Index Value t =Sum of Closing Prices t /Divisor Index Divisor at t0 =Sum of Closing Prices t0 / Index Value at t0 = 1000

EGX 100 INDEX: EGX introduced a new price index; EGX 100 Price Index, on 2nd of August 2009, which tracks the performance of the 100 active companies, including both the 30 constituent-companies of EGX 30 Index and the 70 constituent-companies of EGX 70 Index. EGX 100 index measures the change in the companies' closing prices, without being weighted by the market capitalization, and was retroactively computed as of 1 January 2006. EGX 100 Index Calculation Methodology:

The index is calculated according to the following formula:

Index Value t =

The sum of closing prices is calculated according to the Volumes Weighted by Average Price (VWAP) method. Divisor The divisor is a factor that converts the sum of the closing prices of constituent companies to the index level. It is derived at the starting point of the index (base date) by dividing the sum of the closing prices by an arbitrary number or Multiplier (for example, setting the index at 1000 on its start date). The divisor is calculated on the starting date t0 as follows: