Financial Advisory - Egypt | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$82.97bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.24%, resulting in a market volume of US$83.95bn by 2029.

Definition:

Financial advisory is the process of providing guidance and recommendations to clients regarding their financial decisions. Financial advisors use their expertise and knowledge to help clients make informed decisions about their investments, retirement planning, taxes, insurance, and other financial matters. The Financial Advisory segment encompasses the revenues generated by this service by both financial institutions and advisors, and includes the number of financial advisors, average revenue per advisor, and assets under management (AUM).

Traditional Wealth Management (non-automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
B2C & B2B Revenues
Full-Service Products for Insurance, Investing, Lending, and Trading

Commercial Assets or Assets Under Custody
Digital Wealth Management (automated wealth management services)
Digital Investment, incl. Robo-advisors and Neobrokers
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Retail/Non-Professional Investors

The Financial Advisory market in Egypt has been experiencing significant growth and development in recent years. Customer preferences in the Financial Advisory market in Egypt have shifted towards seeking professional advice and guidance for managing their finances.

This trend can be attributed to several factors, including the increasing complexity of financial products and services, as well as the growing awareness among consumers about the importance of financial planning and investment. Additionally, the younger generation in Egypt is becoming more financially literate and is actively seeking ways to grow their wealth. One of the key trends in the Financial Advisory market in Egypt is the rise of digital platforms and technology-driven solutions.

With the increasing penetration of smartphones and internet access, more consumers are turning to online platforms and mobile apps to access financial advice and services. This shift towards digital channels has enabled greater convenience and accessibility for customers, allowing them to receive financial advice anytime and anywhere. Another trend in the Financial Advisory market in Egypt is the growing demand for Sharia-compliant financial advisory services.

Egypt has a significant Muslim population, and there is a strong preference for Islamic banking and investment products that adhere to Islamic principles. As a result, there is a growing need for financial advisors who specialize in Sharia-compliant investments and can provide guidance in accordance with Islamic law. Local special circumstances in Egypt also play a role in shaping the Financial Advisory market.

The country has a large and growing middle class, which is driving the demand for financial advisory services. Additionally, Egypt has been implementing economic reforms and attracting foreign investment, which has led to increased wealth creation and a greater need for professional financial advice. Underlying macroeconomic factors also contribute to the development of the Financial Advisory market in Egypt.

The country has been experiencing steady economic growth, which has resulted in an increase in disposable income and wealth accumulation among individuals. This growth, coupled with a favorable regulatory environment, has created a conducive environment for the growth of the Financial Advisory market. In conclusion, the Financial Advisory market in Egypt is witnessing significant growth and development, driven by shifting customer preferences, the rise of digital platforms, the demand for Sharia-compliant services, local special circumstances, and favorable macroeconomic factors.

As the market continues to evolve, financial advisors in Egypt will need to adapt to these trends and provide innovative solutions to meet the changing needs of their customers.

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management 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 activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). 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 data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.