Arab Finance: FTSE Russell has decided to keep Egypt on the watchlist amidst concerns over a potential downgrade from its emerging-market status to unclassified status, Bloomberg reported.

The decision follows the index provider’s first classification review in 2024, with significant implications for global investment flows totaling $15.9 trillion, particularly in emerging and frontier markets.

FTSE Russell's assessment comes amid reports of progress in addressing previous obstacles faced by foreign institutional investors in transferring capital from Egypt.

Recent investments from the UAE government and a staff-level agreement with the International Monetary Fund (IMF) have reportedly alleviated concerns regarding capital mobility.

While acknowledging these positive developments, FTSE Russell emphasized the need for continued vigilance, citing the evolving nature of market dynamics.

The company said that it will closely monitor the Egyptian market and provide an update on its status by the end of June 2024.

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