The Egyptian Stock Exchange (EGX) presents a compelling opportunity for individuals looking to invest their savings. Whether you’re a seasoned investor with knowledge of the stock market or someone new to investing, there are several ways to engage with the EGX, depending on your level of expertise and time availability.
For those with experience in financial markets and sufficient time to track their investments, investing through a brokerage firm is a viable option. These firms provide investors with essential information, reports, and data to assist in making informed decisions. If you’re confident in your ability to navigate the stock market, working with a brokerage can allow you to directly invest in stocks of your choice.
However, for those who lack sufficient knowledge about the stock market or don’t have the time to actively manage investments, there are two main routes to consider. First, small investors can opt for investing in mutual funds managed by licensed and specialized investment managers. These funds pool capital from multiple investors and are managed by professionals, providing a hands-off approach for those who may not be familiar with the market. Alternatively, if you have significant capital, you can invest through a licensed portfolio management company that will handle the investment on your behalf.
The EGX lists shares from some of Egypt’s most prominent business figures. By purchasing shares in a company, investors essentially become partners in that business, gaining the right to participate in the company’s profits through dividends and even voting in general assembly decisions, based on their shareholding percentage.
According to data from the Egyptian Stock Exchange in 2024, investing in the stocks of prominent business figures has provided returns that outpace many other investment avenues, including bank certificates, gold, real estate, and even digital currencies. For example, a 100,000 EGP investment in the shares of the Swedy family-owned company, Swedy Electric, has yielded a return of 161,000 EGP, with the share price rising from 29 EGP to 75.88 EGP. Similarly, an investment in Palm Hills, owned by businessman Yassin Mansour, saw a 145% return, with the share price increasing from 2.66 EGP to 6.54 EGP.
For an investment of the same amount in Talaat Mostafa Group, owned by Hisham Talaat Mostafa, the return would exceed 130,000 EGP, as the share price rose from 24.15 EGP to 56 EGP, reflecting a growth of 131%.
The richest family in Egypt, the Sawiris family, also offers substantial returns. A 100,000 EGP investment with Onsi Sawiris in Orascom Development Egypt would yield a return of 66,000 EGP, with the share price climbing from 11.1 EGP to 18.5 EGP. Meanwhile, investing with Nassef Sawiris in Orascom Construction would generate a return of 57,000 EGP, with the share price rising from 180.17 EGP to 284.5 EGP.
Investing in Oriental Weavers (the Khamis family’s company) has also proven profitable, with the share price increasing from 16.91 EGP to 25 EGP, marking a growth of 52%. On the other hand, an investment in Ezz Steel, owned by Ahmed Ezz, has seen the lowest return among these examples, with the share price rising from 92 EGP to 114.9 EGP, reflecting a modest increase of 24%.
In conclusion, the Egyptian Stock Exchange offers lucrative opportunities for investors, especially those willing to invest in the shares of major companies and business figures. While there are various ways to invest depending on one’s expertise and time commitment, the potential for high returns, as demonstrated by recent performance data, makes the EGX an attractive avenue for both small and large investors alike.
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