The Egyptian equity market is among the most developed in the region with more than 633 listed firms. Market capitalization on the market climbed in 2005 from الجنيه المصري مقابل الدولار الامريكي 47.2 billion to USD 93.5 billion in 2006, peaking at USD 139 billion in 2007. Subsequently, it has fallen to USD 58 billion in 2012, with turnover surging from USD 1.16 billion in January 2005 to USD 6 billion in January 2006.

Private equity has not been widely used in Egypt from the past for a source of financing for businesses. The government, however, has staged several policy changes and reforms specifically intended to create internal private equity capital and also to attract private equity funding from international sources.

The major industries include textiles, hydrocarbon and chemical production, and generic pharmaceutical production. Unemployment is high at approximately 10.5%.

Until 2003, the Egyptian market suffered from shortages in foreign currency and excessively elevated interest prices. A string of budget reforms were conducted as a way to redress weaknesses in Egypt's economic environment and to boost private sector participation and confidence in the market.

Major monetary reforms were released in 2005 in order to tackle the informal sector which based on estimates signifies somewhere between 30% to 60 percent of GDP. Substantial tax cuts for corporations have been introduced for the very first time in Egyptian history. The new revenue tax Law No 91 for 2005 reduced the tax rate from 40% to 20 percent. According to government statistics, tax filing by individuals and corporations increased by 100%.

Many changes were made to reduce trade tariffs. One of the legislators' goals were tackling the black market, reducing bureaucracy and pushing trade liberalization measures. Amendments to Investment and business law were introduced in order to draw foreign investors. By way of instance, the amount of days required for establishing a business was radically reduced.

Significant improvement to the national financial environment increased shareholders' confidence in Egypt. The Cairo & Alexandria Stock Exchange is regarded one of the best ten emerging markets on earth. The changes to the policy also brought increased levels of foreign direct investment in Egypt. According to the UN Conference on Trade and Development's World Investment Report, Egypt was rated the 2nd biggest country in bringing foreign investment in Africa.

Given the high number of amendments to laws and regulations, Egypt has succeeded to a certain extent in conforming to international standards. Very recently the Cairo & Alexandria Stock Exchange (CASE) was welcomed with complete membership into the World Federation of Exchanges (WFE)--the first Arab nation to be invited.

Enforcement of those newly adopted regulatory frameworks remain, sometime debatable. Problems like corruption hamper economic growth in Egypt. Many scandals involving bribery were reported during the previous years. "In 2002 alone, as many as 48 high-ranking officials--including former cabinet ministers, provincial governors and MPs were convicted of influence peddling, profiteering and embezzlement. Maintaining good relations with politicians is occasionally a key to business success in Egypt. According to the 2006 Corruption Perception Index developed by Transparency International (where the higher the ranking the greater the amount of corruption), Egypt ranked 70 out of 163. On a scale from 0 to 10 (with 0 being highly corrupt), Egypt scored a 3.3 .

According to a research by the International Organization for Migration, 20% of Egyptian remittance-receiving households interviewed steered the remittances towards various forms of investment, although the huge majority (80 percent) was more worried about using remittances for meeting the everyday needs of their families including spending on healthcare and schooling. Among the 20 percent of families that chose to invest, 39% invested in real estate, 22% invested in small businesses employing fewer than five people and the smallest proportions of investors (6%) spent in medium private business using no more than 20 people. According to Egypt's Human Development Report 2008, despite representing approximately 5% of GDP, remittances provided the initial capital for just 1.4 percent of newly established small and medium enterprises in Egypt in 2003-2004.

The stock market capitalisation of listed companies in Egypt was valued at الجنيه المصري مقابل الدولار الامريكي 79.672 billion in 2005 from the World Bank Falling to $58 billion in 2012