How to start saving and investing in Egypt

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The investment landscape in Egypt in 2023

Egypt is facing a host of economic challenges. Here’s what you need to know as an investor based in Egypt, and how you can find ways to steadily grow your wealth and get set up for a more stable future. 

What new investors in Egypt need to know

Egypt is facing record-breaking inflation

The Egyptian pound is one of the hardest-hit currencies in the global inflation crisis currently impacting billions of people around the world. Inflation in Egypt has hit over 30%, meaning everything costs 30% more, savings go 30% less far, and salaries haven’t been able to keep up.

Exchange rates are unfavorable and fluctuating

The country is also struggling to maintain a liquid foreign exchange reserve. At the end of last year, the IMF set up a 46-month loan of 3 billion USD in order to help save the struggling economy. However, this loan is contingent on a few economic changes the country will have to make, including “a permanent shift to a flexible exchange rate regime to increase resilience against external shocks and to rebuild external buffers,” according to the IMF report.  

GDP is declining

Economists predict that Egypt will continue to struggle with a declining GDP in 2023. That means economic growth will slow down, making it more difficult for everyday people to save and grow their wealth. 

The Egyptian Pound is depreciating

Unlike other emerging economies that may see some relief in coming months, Egypt’s pound is predicted to continue to depreciate in value this year. 

Types of investments Egyptians can consider

Despite the challenging circumstances they’re facing today, young investors in Egypt are trying to find ways to build a financial cushion and start saving for the future. 

Mutual funds or ETFs

Mutual funds in Egypt can be a safer bet than individual stocks — same goes for ETFs, or exchange-traded funds. Both options involve investing in a group of stocks, bonds, and other types of investments that automatically diversify a person’s investment strategy. 

Egyptian government bonds

Government bonds are offered by governments to members of the public in order to facilitate their economic growth. In Egypt, government bonds traded on the Egyptian Exchange treasury bonds, housing bonds, and development bonds.

However, sales of these bonds have slowed amid concerns with the plummeting Egyptian pound.

Gold

Gold is widely regarded as a solid investment in emerging markets, even though it does experience some fluctuations like any investment (especially commodity-based investments). Buying gold can feel like a safer bet than other types of investments that are impacted by currency devaluation. Since it’s an investment that people store at home, or in security deposit boxes, it can be more susceptible to theft than online investments. Investors can also buy funds that are tied to the value of gold if they don’t want to worry about storage. 

The Egyptian Stock Exchange

Individual stocks bought on the Egyptian Stock Exchange are a risky investment — even when currency issues aren’t impacting the country. Investing all your savings into one stock means that if that stock tanks, so does your investment. That’s why mutual funds and ETFs can be safer bets. 

Real estate

Though it’s not easy to buy real estate for personal use, or to invest in real estate investment trusts (which help people invest in income-producing real estate like commercial spaces or multi-unit apartments), it can be a good option if you have the capital. However, real estate investments are not immune to currency depreciation and inflation.

Cenoa

Cenoa helps investors in emerging markets grow their wealth sustainably — even amid currency crises. It’s a DeFi super wallet with 5% annual yield that stores funds as digital dollars, always on par with USD. Cenoa has no fees, ever, and you can withdraw your investments at any time.