About Khartoum Stock Exchange – KSE

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The idea of establishing a stock exchange in Sudan started in 1962 whereby many formalities such as studies and communications had been initiated by the Ministry of Finance and Bank of Sudan jointly with the International Finance Corporation (IFC), one of the arms of the World Banks advisory Services offering advice, problem solving, and training to companies, industries, and governments, all aimed at helping private sector enterprises overcome obstacles to growth.

The People’s Assembly had endorsed the Stock Exchange Act of 1982 to regulate Stock Exchange establishments in Sudan but no serious action was taken until August 1992, when the economic liberalization policy called The Three Years Salvation Program (1990-1993) was formulated. Since then, the Stock Exchange was established and a board was formulated.

Two years later, the Khartoum Stock Exchange Act was passed and consequently the Khartoum Stock Exchange (KSE) became an independent legal entity. In October 1994, activity in the Primary market commenced, and no sooner, in January 1995 the secondary market was completed and shares of listed companies were being traded. Within a year, the listed companies increased from thirty to forty companies.

In 2001 a number of Investment Funds (SUKUK) and Government Musharaka Certificates (SHAHAMA) were issued and listed in the Khartoum Stock Exchange market. A great development occurred in 2002 in the relations between KSE and the regional and international financial markets, leading to the declaration of the Khartoum Index and the listing of KSE in the database of the Arab Monetary Fund, as well as the cross-listing of Sudatel in the Abu Dhabi market.

In 2004 a boom occurred in the market and the year experienced the highest level of volume trading ever since its establishment. The following year the trading volume continued escalating resulting in its increase in volume up to 1.21 Billion Sudanese pounds (gineih) and an increase in the Khartoum Index with a growth ratio of 97.3%, consequently the market value rose to 7.47 Billion Sudanese pounds (gineih). That year the Khartoum Stock Exchange, according to the AMF (ascending financial markets) database, was first in its market growth compared with other Arab markets, with a marked ratio of 50.8%.

The Khartoum Stock Exchange has been on an up-trend since its establishment. Many components of the stock exchange have been developed and become operative ever since. In 2010 to date, more planning and structuring of the Khartoum Stock Exchange is underway for example: the Sudan Commodity Exchange was accepted as an observer in the Union of Arab Stock Exchange, the development and implementation of financial operating software, to establish new systems and eventually integrating it into an up and running live system.