From gold to investment funds, Egyptians rethink savings amid inflation pressures
The transformation was highlighted by the latest data released by the Financial Regulatory Authority (FRA), which showed a sharp jump in investment fund performance during the first quarter of 2026, a sign of a gradual change in Egyptians' saving behaviour.
According to the report, the net asset value of investment funds surged to EGP 410.6 billion by the end of March 2026, up from EGP 316 billion in December 2025, while the number of operating funds rose to 187 from 172.
The number of investment fund certificates also climbed to EGP 31.4 billion from EGP 20.3 billion, reflecting growing investor demand. Individuals accounted for more than 74 percent of fund ownership, compared with around 16 percent for institutions and companies, highlighting rising public confidence in regulated investment vehicles supervised by the Financial Regulatory Authority.
Money market funds denominated in Egyptian pounds recorded the largest asset value at EGP 276.5 billion. Precious metals funds, on the other hand, saw particularly strong growth, with assets nearly doubling to more than EGP 10 billion within three months.
The figures suggest that while many Egyptians remain closely tied to gold as a store of value, they are increasingly investing in the precious metal through more modern, regulated financial tools rather than direct ownership.
Precious metals funds also recorded the highest average quarterly return at 20.37 percent, followed by index funds and private equity funds. The performance has raised broader questions about whether Egyptians are beginning to abandon traditional saving practices, such as storing gold at home, in favour of investment through funds and modern financial instruments.
Observers attribute the shift to economic developments, persistently high inflation in recent years, and the rapid spread of financial technology and digital investment applications, which have encouraged many citizens to seek instruments offering higher returns, stronger liquidity, and greater flexibility compared with traditional savings methods.
Treasury bill funds challenge banks
Tarek Metwally, former deputy chairman of Banque du Caire, told Ahram Online that the Egyptian market is witnessing a noticeable change in savers’ behaviour as citizens become increasingly aware of the real returns generated by different savings and investment vehicles, particularly amid persistently elevated inflation.
Metwally explained that some bank savings certificates offering annual returns of 17.25 percent over three years no longer enjoy the same appeal they once did, especially as inflation is expected to remain around 16 percent. This has pushed many investors to search for shorter-term instruments capable of delivering higher returns and greater liquidity flexibility.
He noted that many clients have begun comparing returns on bank deposits and current accounts, which sometimes range between 10 and 11 percent, with the yields generated by treasury bills and treasury bill-linked funds, which currently range between 19 and 20 percent.
According to Metwally, treasury bill funds, commonly known as “money market funds,” have become among the most attractive investment instruments recently, because they invest in low-risk short-term government debt instruments while providing high liquidity and quick redemption options alongside competitive returns.
He explained that money market funds rely primarily on treasury bills, deposits, and short-term financial instruments, making them among the least risky categories of investment funds. Many investors, he added, view them as similar to traditional bank savings but with relatively higher returns.
Metwally said the rising demand for these funds reflects growing financial awareness among citizens, particularly with the expansion of digital applications that make it easier to purchase and redeem fund certificates.
He expected investment funds and fixed-income instruments to continue growing in the coming period unless banks begin repricing their savings products more competitively to retain liquidity within the banking sector.