Our Market

Why Invest In Egypt ?

As a strong growth economy backed by favorable demographics, Egypt is an important market for global investors.

Supporting Macro Fundamentals

Supporting Macro Fundamentals

After an extended period of economic uncertainty, Egypt’s thriving economy has proven to be remarkably resilient, as one of only six economies which have not experienced Real GDP shrinkage in a single year since 1980. A 2018 Harvard report ranked Egypt as the world’s third fastest growing economy in the coming decade. Its economy is highly diversified, with manufacturing and consumer-driven sectors making up significant portions of its GDP.

Favorable Demographics

Favorable Demographics

With a population expected to exceed 100 million by 2020, Egypt has the 15th largest population globally. Egypt’s fast-growing population is relatively young, with the majority under the age of 30. A growing middle-class segment in addition to the rising number of women in the workforce in the coming years are expected to further boost household income and consumer spending.

Impactful Reform Program

Impactful Reform Program

In 2016, the Egyptian government embarked on a major IMF-supported economic reform program which encompassed exchange rate liberalization and fiscal consolidation and took steps to curb its spending and reduce its trade deficit through applying value-added tax and phasing out subsides on fuel and energy. The broad reforms have already shown early results in terms of macroeconomic stabilization, increasing the economy’s competitiveness, spurring local productivity and attracting more foreign investment.

Resilient Capital Markets

Robust Capital Markets

Egypt’s capital markets have continued to exceed expectations, consistently outperforming the MSCI Emerging Markets Index despite vast political change over the past six years. Egypt’s markets have reaped the benefits from a comparative improvement in its macroeconomic and political environment since currency liberalization, with the Egyptian Exchange posting 13 follow-on offerings and 4 IPOs in 2017, a 70% increase in overall Equity Capital Markets transaction volume year-on-year.

Solid M&A Activity

Solid M&A Activity

In recent years, M&A trends have been centered around sectors that are driven by the country’s population, such as fast-moving consumer goods, financial services, healthcare, and education. Egypt looks set to be a bright spot as delayed M&A deals come back on stream, with transaction deal value growth at a CAGR of c. 35% between 2014 and 2017 and expectations for M&A volumes to grow 2.7x by 2019.

Strong Multinational Presence

Strong Multinational Presence

As one of the most promising and fastest expanding markets in its region, Egypt has emerged as a market of significant importance, evidenced by the presence of dozens of global brands. In 2017, the Central Bank of Egypt announced the lifting of previous cash limits for companies importing non-priority products, a measure that will boost the business conditions for both international and local retailers.