Market Insights Financial Capital Raising

Traditional Capital Raising - Egypt

Egypt

The country in Egypt is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$44.58m.
Venture Capital is set to dominate the market with a projected market volume of US$38.51m in 2024.
When compared globally, the United States will lead in Capital Raised, generating US$159,000.0m in 2024.
Egypt's Traditional Capital Raising market is experiencing a resurgence, with a focus on local investors supporting domestic businesses through traditional fundraising methods.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Analyst Opinion

The Traditional Capital Raising market in Egypt has been experiencing significant growth in recent years, driven by various factors. Customer preferences in the Traditional Capital Raising market in Egypt have been shifting towards more conservative investment options.

This is due to a combination of factors, including a desire for stable returns and a cautious approach to risk. Investors in Egypt are increasingly looking for investment opportunities that provide a steady income stream and are less susceptible to market volatility. As a result, traditional capital raising methods such as bank loans and bonds have become more popular among investors in Egypt.

One of the key trends in the Traditional Capital Raising market in Egypt is the increasing use of bank loans as a source of capital. Banks in Egypt have been actively lending to businesses and individuals, providing them with the necessary funds to invest in various projects. This trend can be attributed to the growing confidence in the Egyptian banking system, as well as the availability of low-interest rate loans.

Additionally, the government has implemented policies to encourage banks to lend more, further fueling the growth of the Traditional Capital Raising market in Egypt. Another trend in the Traditional Capital Raising market in Egypt is the rising popularity of bonds. Egyptian companies and the government have been issuing bonds to raise capital, attracting both domestic and international investors.

The appeal of bonds lies in their fixed income nature, making them an attractive investment option for risk-averse investors. Additionally, the government has been actively promoting the bond market, introducing reforms to make it more accessible and transparent. Local special circumstances in Egypt have also contributed to the development of the Traditional Capital Raising market.

For example, the government's efforts to diversify the economy and attract foreign investment have created opportunities for capital raising. The government has implemented policies to support entrepreneurship and innovation, encouraging the growth of small and medium-sized enterprises (SMEs) in Egypt. This has led to an increased demand for capital, which has been met through traditional capital raising methods.

Underlying macroeconomic factors have played a significant role in the development of the Traditional Capital Raising market in Egypt. The country has experienced stable economic growth in recent years, driven by factors such as increased government spending, infrastructure development, and a growing middle class. This has created a favorable environment for capital raising, as businesses and individuals have sought to take advantage of the opportunities presented by the growing economy.

In conclusion, the Traditional Capital Raising market in Egypt has been growing due to changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As investors in Egypt seek more conservative investment options, bank loans and bonds have become increasingly popular. The government's efforts to diversify the economy and attract foreign investment have also contributed to the development of the market.

Overall, the Traditional Capital Raising market in Egypt is expected to continue growing in the coming years, driven by these factors.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average deal size, and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), and new businesses registered (number). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.