Investment in Egypt

Written by: Perihan El Etreby

Date: 2023-06-13

Exploring Currencies, Real Estate, and Gold for a Secure Future

In a world of economic uncertainty, where waves of crisis threaten financial stability, Egyptians are on the hunt for investment opportunities that can weather the storm and pave the way to a secure future. In this article, we unveil three remarkable avenues for investment that have captured the attention of astute Egyptians: the strategic dance with currencies, the captivating realm of real estate, and the timeless allure of gold. Brace yourself as we embark on a journey to explore these possibilities, armed with insights from experts in the field. Discover how Egyptians can navigate the labyrinth of economic turmoil and emerge triumphant with their financial aspirations intact.


I. Changing Currencies and Buying Dollars:

Changing Currencies and Buying Dollars: During economic uncertainties, individuals often turn to stable currencies such as the US dollar as a safeguard against inflation and currency devaluation. By purchasing dollars, Egyptians can protect their wealth and diversify their holdings. However, it is important to note that currency markets are subject to fluctuations and require careful monitoring.

The strategic dance with currencies provides Egyptians with an opportunity to mitigate risks and preserve their purchasing power. By holding a portion of their wealth in a more stable currency like the US dollar, they can shield themselves from the potential devaluation of the local currency. This approach allows them to navigate through economic uncertainties with greater confidence.

Nonetheless, it is crucial for investors to stay informed about global economic trends and market dynamics. Currency markets are influenced by a multitude of factors, including interest rates, geopolitical events, and economic indicators. Regular monitoring and analysis can help investors make informed decisions regarding the timing and extent of their currency investments.

Moreover, it is essential to consider the purpose and duration of holding foreign currencies. Some individuals may choose to hold dollars as a short-term hedge, while others might adopt a long-term perspective for wealth preservation. Understanding personal financial goals and risk tolerance is instrumental in determining the appropriate allocation to foreign currencies within an investment portfolio.

In conclusion, changing currencies and buying dollars offer Egyptians a valuable tool for wealth protection and diversification. However, due diligence and ongoing monitoring are vital when navigating the currency markets. By staying informed and seeking guidance from financial experts, individuals can leverage this investment avenue to fortify their financial positions and face economic uncertainties with resilience.



Economist Insight:

Some analysts said a key sign to look for would-be investors and households using dollars to buy the Egyptian pound at its current low rates, suggesting they think the currency's fall might have reached a limit.


"When portfolio investors start to come back in, that is when the market will have judged equilibrium. But there is no direct way of observing equilibrium," said Farouk Soussa of Goldman Sachs.


II. Investing in Real Estate:

Investing in real estate not only offers the potential for long-term capital appreciation but also provides a tangible asset that can be utilized or rented out to generate a steady income stream. Moreover, well-located properties in high-demand areas tend to exhibit more resilience during economic downturns, making them an attractive choice for investors seeking stability and growth in their portfolios. The enduring demand for housing and commercial space ensures a consistent flow of rental income, creating a reliable source of cash flow that can withstand market turbulence. Real estate investment also allows individuals to take advantage of tax benefits and leverage their investments through mortgage financing, further enhancing the potential returns on their investment. By carefully selecting properties and conducting thorough due diligence, investors can navigate economic crises and reap the benefits of real estate as a dependable investment avenue.


Economist Insight:

Ezz El-Din Hassanein, Economist and Banking Expert, says: "Recently, real estate investment turnout has been declining as investors need a quick harbor for cash. This can also be ascribed to the fact that real estate investment is mostly sought by those who need medium- or long-term investment, those having big financial surpluses, as well as those willing to relocate to new cities," Hassanein reveals, stressing that real estate is considered the best, safest investment with its price growing from 25%-30% annually.


Hassanein further attributed the high turnout on real estate to the long payment periods, a perk that is favored by real estate developers and allows different segments of customers to buy units with less difficulty.


III. Exploring the Potential of Gold:

Gold has historically been viewed as a safe haven during economic uncertainties. Its value tends to rise during inflationary periods, providing a potential hedge against economic downturns. Egyptians can invest in gold through various means, such as purchasing physical gold, gold ETFs, or gold mining stocks.


Economist Insight:

There are voices describing the current prices of gold in Egypt as unfair and exaggerated, but Mohamed Adel, a gold trader, explains that the current local gold prices are fair given that imports have stopped and the demand for bars and gold pounds has increased. “With supply stopping, an increase in price was imminent,” Adel said.


Adel added that demand is higher for gold bars and pounds, as well as used jewelry, because their taxes and added expenses are lower, making them ideal for a later return on investment. Global gold prices and the local currency value against the dollar in the coming days and weeks will determine the short-term and medium-term prices of gold, he said.



As Egyptians navigate the economic crisis, exploring various investment avenues becomes essential. Changing currencies and buying dollars, investing in real estate, and considering the potential of gold are three options worth considering. However, it is important to seek guidance from financial advisors and economists to make informed decisions based on individual circumstances and risk tolerance.


In the words of financial advisor Sarah Ali, "Regardless of the investment option chosen, Egyptians should aim for diversification and carefully assess their risk tolerance. Seeking professional advice is crucial to navigate through these challenging economic times and secure a stable financial future."


By considering these investment options and seeking expert guidance, Egyptians can position themselves for financial stability and make informed decisions that align with their long-term goals.