Digital Investment - Egypt

Egypt

Highlights

Total transaction value in the Digital Investment market is projected to reach US$7.34bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 6.64% resulting in a projected total amount of US$10.13bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$7.34bn in 2024.
The highest cumulated transaction value is reached United States (US$1.78tn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Investment market in Egypt has been experiencing significant growth in recent years.

Customer preferences: Customers in Egypt are increasingly turning to digital investment platforms due to their convenience and accessibility. With the rise of smartphones and internet penetration, investors can now access investment opportunities and manage their portfolios from their mobile devices. This has resulted in a shift away from traditional investment methods towards digital platforms.

Trends in the market: One of the key trends in the digital investment market in Egypt is the emergence of robo-advisors. These automated investment platforms use algorithms to provide personalized investment advice and manage portfolios on behalf of investors. This trend is driven by the desire for low-cost and efficient investment solutions. Robo-advisors are particularly popular among young and tech-savvy investors who are comfortable with technology and prefer a hands-off approach to investing. Another trend in the market is the increasing popularity of crowdfunding platforms. These platforms allow individuals to invest in startups and small businesses, providing them with access to investment opportunities that were previously only available to institutional investors. Crowdfunding platforms have gained traction in Egypt due to the entrepreneurial spirit of the population and the desire to support local businesses.

Local special circumstances: Egypt has a large and young population, with a high percentage of tech-savvy individuals. This demographic is driving the adoption of digital investment platforms in the country. Additionally, the government has been actively promoting digital transformation and financial inclusion, which has created a favorable environment for the growth of the digital investment market.

Underlying macroeconomic factors: Egypt has been experiencing strong economic growth in recent years, which has resulted in an increase in disposable income and a growing middle class. This has created a larger pool of potential investors who are looking for investment opportunities to grow their wealth. The government has also implemented economic reforms to attract foreign investment, which has further contributed to the growth of the digital investment market. In conclusion, the Digital Investment market in Egypt is growing rapidly due to customer preferences for convenience and accessibility, as well as the emergence of robo-advisors and crowdfunding platforms. The young and tech-savvy population, along with the favorable macroeconomic factors, are driving the growth of the market. With the continued focus on digital transformation and financial inclusion, the digital investment market in Egypt is expected to continue to expand in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

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 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, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. 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.

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.