The Egyptian equity market is among the most developed in the region with over 633 listed firms. Market capitalization on the market doubled 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. Afterward, 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 in the past as a source of funding for businesses. The government, however, has instituted a number of policy changes and reforms specifically intended to develop internal private equity funds and also to attract private equity financing from international sources.

The significant industries include textiles, hydrocarbon and chemical manufacturing, and generic pharmaceutical manufacturing. Unemployment is high at about 10.5%.

Until 2003, the Egyptian market suffered from shortages in foreign currency and too elevated interest prices. A series of budget reforms were conducted in order to fix flaws in Egypt's financial environment and to boost private sector involvement and confidence in the economy.

Major monetary reforms were released in 2005 in order to tackle the informal sector that based on quotes signifies somewhere between 30% to 60% of GDP. Substantial tax cuts for corporations were released for the first time in Egyptian history. The new revenue tax Legislation No 91 for 2005 decreased the tax rate from 40% to 20 percent. According to government figures, tax filing by individuals and corporations increased by 100 percent.

Lots of changes were made to cut trade tariffs. Among the legislators' aims were handling the black economy, reducing bureaucracy and pushing through trade liberalization measures. Amendments to Investment and business legislation were introduced so as to draw foreign investors. For example, the amount of days required for establishing a company was dramatically reduced.

Substantial improvement to the domestic financial environment improved investors' confidence in Egypt. The Cairo & Alexandria Stock Exchange is considered one of the greatest ten emerging markets in the world. The alterations to the policy also attracted increased amounts of foreign direct investment in Egypt. According to the UN Conference on Trade and Development's World Investment Report, Egypt was ranked the second largest country in attracting foreign investment in Africa.

Given the large number of amendments to legislation and regulations, Egypt has succeeded to a certain scope in conforming to international standards. Lately the Cairo & Alexandria Stock Exchange (CASE) was welcomed with full membership into the World Federation of Exchanges (WFE)--the first Arab country to be invited.

Enforcement of those recently adopted regulatory frameworks stay, sometime debatable. Issues like corruption hamper economic development 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 secret to business success in Egypt. According to the 2006 Corruption Perception Index developed by Transparency International (where the higher the rank the larger 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 study from the International Organization for Migration, 20 percent of Egyptian remittance-receiving families interviewed channeled the remittances towards various forms of investment, while the large majority (80%) was more worried about using remittances for meeting the everyday needs of their families such as spending on healthcare and schooling. One of the 20% of families that decided to spend, 39% spent in property, 22% spent in small businesses employing fewer than five people and the smallest proportions of investors (6%) spent in moderate private company using no more than 20 individuals. According to Egypt's Human Development Report 2008, despite representing approximately 5 percent of GDP, remittances given the initial capital for only 1.4% of newly established small and medium enterprises in Egypt in 2003-2004.

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