Beyond the Core: Stock-Market Development and Performance in the Middle East, 1872–1914 "Beyond the Core: Stock-Market Development and Performance in the Middle East, 1872–1914" - Ali Coskun Tuncer

Using a monthly security-level dataset, this paper reconstructs market size, composition, and equity returns for Alexandria, Cairo, and Istanbul. By 1913, equity capitalization reached 40% of GDP in Egypt but 14% in Ottoman Turkey. Growth came through new issuance rather than price appreciation, while risk-adjusted returns were low. Istanbul returns co-moved more strongly with London, reflecting foreign-incorporated mining and banking firms linked to international capital markets, while Egypt’s larger market was concentrated in land and mortgage finance tied to its cotton economy. The findings show that legal regimes governing foreign capital shaped how peripheral exchanges interacted with global financial markets.