Egypt’s investment fund sector recorded significant growth in the third quarter of 2026, with net assets exceeding EGP 500 billion, according to data from the Financial Regulatory Authority (FRA).
Key Takeaways
- Asset growth: Total net assets reached EGP 504.71 billion in September, a 7.16% increase from the EGP 470.97 billion recorded in June.
- Market expansion: The number of investment funds rose to 232 in the third quarter, up from 224 in the previous quarter.
- Investor dominance: Individual investors hold 79.8% of all fund units, totaling 41.90 billion units.
- Portfolio diversity: Assets denominated in Egyptian pounds reached EGP 470.10 billion, while foreign currency-denominated assets equaled approximately EGP 34.60 billion.
- Top performers: Private equity funds led market returns with an average of 15.24%, followed by index funds at 13.03%.
Growth in Assets and Participation
The FRA, led by Chairman Islam Azzam, reported that total assets under management climbed to EGP 512.84 billion by September’s end, up from EGP 478.10 billion in June. This represents a quarterly growth rate of 7.27%. The authority attributed this expansion to efforts aimed at improving the legislative environment and developing infrastructure for non-banking financial activities.
The range of investment products has widened to include equity, money market, precious metals, private equity, index, and real estate funds. Azzam stated that this diversification aims to provide additional savings channels and risk management mechanisms for various investor segments, supporting financial inclusion.
Investor Composition and Returns
Market participation grew significantly during the quarter, with the total number of fund units rising by 19.21% to 52.50 billion. Individual investors remain the primary participants, holding nearly four-fifths of the total units. Legal entities accounted for 19.4% of units, while the remaining 0.8% were held by founding entities.