The development of financial services is moving swiftly to keep pace with Egypt’s expanding economy. Many public assets are being offered for sale through the capital markets, including The Egyptian Exchange (EGX), which has notched up a stellar performance in the past year. EGX has responded by changing its rules and procedures to meet the highest standards. New financial instruments and mechanisms have been introduced, including a new electronic link between dealers, the stock exchange and clearing companies. The impact has been an impressive volume of transactions. International cooperation has improved. An agreement to establish a branch of the Arab Sock Exchange was signed in February, 2005. The World Federation of Exchanges initiated discussions to elevate Egypt to full membership. A delegation from WFE gave high marks to EGX, noting the positive impact on the economy of political and social reform. They expect Egypt to benefit from greater trust and attract more foreign investment. Parallel reform has been ongoing in insurance, mortgage lending and financial leasing. The insurance industry is vital to the Egyptian economy, providing risk protection and generating capital for investment. Progress is being made to make mortgage lending accessible to more people and to strengthen leasing programme for business.