The sentiment at last week’s CI Capital investor gathering in Cairo suggests 2026 is about the alpha play. Global allocators are no longer just looking for stability; they are looking for “some of the most serious value for money on the planet,” the founder of a German family office, which has 20% of its USD 10 mn Africa fund allocated to Egypt, told EnterpriseAM.

The event brought together 65 global capital allocators from the US, UK, Germany, South Africa, and the GCC with a collective USD 5 tn in assets under management to meet with 40 of Egypt’s leading listed companies. The general consensus was that the availability of FX and recent monetary reforms have significantly improved sentiment, though concerns about the level of sovereign debt and the consistency of policy remain.

Impact of FX availability and monetary reforms

The return of FX availability is the most significant development, a partner at a US-based management firm from New York, which manages USD 350 mn in Africa-focused funds, told us. He explained that their sentiment is a direct reflection of the C-suite, noting, “When they’re excited and they’re investing in Capex, I’m excited. When they’re scared about sourcing FX, I’m scared.” He also mentioned that valuations remain attractive because “the math” suggests that as bond rates come down, “you’re going to get a better valuation” for equities.

The head of regional equities at a regional investment bank and asset manager echoed the same sentiment, describing Egypt’s story as “one of the most attractive in the MENA,” if not the best, particularly as excitement over the Saudi market has softened due to budget deficits and reduced spending. “Valuations are cheap,” he said, because the market has yet to fully catch up to the post-devaluation inflation that pushed up corporate revenues and net income. He also revealed that his regional fund’s allocation to Egypt climbed to 25% from zero just two years ago. He admitted that for most foreign investors, a 25% allocation would seem “crazy” given that Egypt’s weight in regional indices like the S&P is “less than 2%.”

A researcher from a South African investment fund told us how their meetings with local banks and manufacturers focused on how the market has improved since 2024, with the fund now having 55% of its USD 160 mn portfolio allocated to Egypt. They admitted that they are “always worried about the currency,” calling it “the biggest issue,” but noted that “it is quite stable at the moment.” They identified food and telecommunications as sectors with consistent growth, noting that “food is always a good thing in Egypt” and highlighting digital banking as a huge prospect.

Investor sentiment and valuation plays

The local market is a “high-beta” play, and current valuations are hard to ignore, an equities manager from a major Bahraini bank that manages USD 3.5 bn in total AUM told us. The technical underweighting in global indices was echoed by him, noting that because Egypt represents only about 1.5% of the benchmark, their own 2-3% exposure is actually a significant “off-benchmark” position. He also explained that they recently re-entered the Egyptian market after being away for a long time due to capital controls.

The founder of the German family office described the domestic market as a high-value destination. Having founded 30 companies, he noted that by African standards, “I feel safe” in Egypt, specifically citing the “institutional background” as a strength. They are looking for companies with a “runway for reinvestment,” saying that businesses that simply “dividend it all out” are “less interesting.”

New investors and market caution

“The big progress was actually getting rid of the parallel rate and letting the currency float,” a research analyst from a South African investment firm told EnterpriseAM, describing it as “a big break” for them. While they currently have no exposure to Egypt, they are now actively looking, the analysts told us.

While they expressed interest in the banking and fintech sectors, they also noted a degree of caution. “You just don’t know whether the government will commit to the float when things are tough … you don’t know if the central bank will go back and massage the currency,” they explained. For them, the future is about seeing if the authorities “let the currency fluctuate” during difficult periods.

A partner in a New York-based firm pointed to the “aggregate amount of sovereign debt” as a point of concern. Being one of the biggest borrowers from the IMF “is not a club you want to be in.” They emphasized that “addressing the debt, de-leveraging, and fiscal surpluses” are necessary to show that “the marginal change is getting better, not worse.” Their concern is simple: “if there’s another global shock… if you’re highly leveraged, whether you’re a business or a country, you’re vulnerable.”

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