Hedge Funds: A New Frontier for Egypt's Capital Market Development?
Zawya Special Report
Egypt’s financial sector is entering a new phase, where nontraditional investment vehicles, such as hedge funds, are gaining strategic interest. While the market infrastructure is still maturing, Egypt’s economic ambitions, regulatory developments, and investor appetite are aligning to support the future entry of hedge funds.
If adopted strategically, hedge funds can help deepen liquidity, diversify investment strategies, and enhance Egypt’s position as a regional capital markets hub.
However, several headwinds remain. More than a year has passed since hedge fund regulations were introduced, yet leading asset managers have not moved to establish such vehicles. Market participants argue that further developments—particularly the creation of an active derivatives market—are needed before hedge funds can take root.
Hence, a productive dialogue between the regulator and the market participants is key to successfully launch hedge funds in Egypt.
For the full report in both English and Arabic, please click here.
