Egypt Remittance Market Size and Forecast (2019-2025)

Executive Summary

In recent years Egypt inward and outward remittances have been on declining phase. Egypt faced a severe foreign currency shortage due to a fixed exchange rate system and an overvalued local currency. This led to the rise of a parallel market where the Egyptian pound reached over LE 70 per US dollar, drastically reducing official remittances from expatriates. Remittances to Egypt fell in 2022 and in 2023 as well. The devaluation of the Egyptian pound and a fixed exchange rate system exacerbated the issue, causing many expatriates to rely on informal channels for remittance transfers with a 38% decrease in remittance flows recorded during the first half of 2023. Egypt's pursuit of substantial foreign direct investment (FDI) also faced setbacks due to persistent geopolitical tensions in Gaza, Libya, and Sudan. In 2023, net FDI fell to USD 10 billion, down from USD 11.4 billion in 2022. Despite this decline, Egypt remained the second-largest recipient of FDI in Africa, after South Africa.

The Egypt Remittance Market is a key sector in the national economy, continuing to hold the top position in the Middle East and North Africa (MENA) region as the largest recipient of remittances in the region. Despite facing challenges in recent years, Egypt remains a crucial hub for remittance flows, significantly bolstering the country’s foreign exchange reserves.

To address its geopolitical and financial challenges, Egypt has sought financial support from Western sources, including the European Union (EU) and the International Monetary Fund (IMF). As in March 2024, the IMF expanded its loan agreement with Egypt from USD 3 billion to USD 8 billion reflecting a positive outlook for the economic recovery as this agreement is expected to stabilize Egypt's economic conditions, improve investor confidence, and potentially boost remittance flows by creating a more favourable environment for expatriates to send money home.

Looking ahead, the market is expected to recover, supported by recent reforms, including currency devaluation, rate hikes, and substantial investments from the United Arab Emirates and an anticipated increase in outward remittances from Gulf Cooperation Council (GCC) countries. This projected growth offers significant opportunities for market expansion and improved financial inflows, surpassing the MENA region’s expected growth rates.

Thus, despite facing regulatory, economic and infrastructural challenges, the Egyptian remittance market is poised for recovery and continued growth, bolstered by ongoing reforms, technological advancements, and economic support provided by various international organizations such as IMF and the European Union.

Egypt Inward Remittance Flows Value:

In 2023, remittances to the Middle East and North Africa fell by 3.2%, with a substantial decline in flows to Egypt, the region's largest recipient. Egypt experienced a significant foreign currency shortage due to a fixed exchange rate and an overvalued local currency, causing remittances to drop. The disparity between official and parallel exchange rates led many expatriates to use informal channels for remittances, exacerbating the issue. Despite this, Egypt maintained its top position in the MENA region with highest remittance inflows for the year.

Future Outlook of Egypt Remittance Market:

The Egypt Remittance Market is expected to experience significant growth, driven by a combination of economic reforms, international financial support, and increasing remittance flows from expatriates. Key factors contributing to this positive outlook include the recent international investments, such as the USD 8 billion agreement with the IMF and the EUR 7.4 billion aid package from the European Union. These measures are anticipated to stabilize Egypt's

Overall, the Egypt Remittance Market is poised for robust expansion, bolstered by economic stabilization measures, international financial support, and strategic initiatives to promote financial inclusion and digital payments.
 
Scope of Egypt Remittance Market Report:

Makreo Research has recently published an in-depth analysis titled “Egypt Remittance Market Size and Forecast (2019-2025) - Growth Analysis by Inward and Outward Remittances, Mode of Transfer, End Users, and Digital Payment Market”. This report explores the historical performance and current state of the Egyptian remittance market, identifying the key factors driving its future growth. It begins with an analysis of Egypt’s macro-economic environment including, economy, policies, geography, and demographics, and their impact on the remittance sector. The report then delves into the various segments of the Egyptian remittance market, providing detailed insights. It also examines the country's digital payment market, covering multiple aspects of its development.

Additionally, the report profiles major market players, including their financial performance and recent activities, and evaluates the competitive landscape. Furthermore, it assesses market opportunities and provides a brief outlook on future prospects. Overall, the report offers stakeholders a comprehensive view of the Egyptian remittance market, helping them understand its current dynamics, growth potential, and investment opportunities.

Market Assessment:

The report provides an in-depth analysis of the Egypt Remittance Market, examining key parameters such as remittance inflows and outflows, and assessing both historical and current market performance. It explores factors such as the Egyptian diaspora abroad, remittance costs, various remittance corridors, and the impact of economic, political, technological, and demographic influences. Additionally, the report identifies opportunities within the market and offers a detailed overview of Egypt's digital payment sector. It also includes a comprehensive segmentation analysis based on remittance type, transfer mode, channel type, end user, and geography.

Period of Study:

• 2019 - 2023: Past and Present Scenario
• 2023: Base year of study
• 2024 & 2025 Forecast

Key Areas Covered in the Report:

• Remittances by Type
• Inward Remittance
• Outward Remittance
• Remittances by Mode of Transfers
• Non-Bank
• Banks
• Demographic Profile
• Remittances by Channels
• Remittances by Geography
• Remittances by End-user
• Digital Remittance Market

Competitive Landscape:

This section provides a comparison of the market shares of key players in the Egypt remittance market, emphasizing recent investments, mergers and acquisitions (M&A), and funding activities. It also includes detailed profiles of selected industry players and compares them across various parameters.

Companies Covered:

• The Western Union Company
• MoneyGram International Incorporation
• PayPal Holdings Incorporation
• WorldRemit
• Ria Money Transfer
• Commercial International Bank (CIB)
• Banque Misr
• Al Ahli Bank of Kuwait - Egypt (ABK-Egypt)
• OFX Group Limited.

Key Questions Answered:

1. What are the historical trends and current status of Egypt's remittance market?

2. How do Egypt's economic, political, technological, and demographic factors impact the remittance market?

3. What are the key segments within the Egyptian remittance market, and what insights do they offer?

4. How is Egypt’s digital payment market evolving, and what initiatives are enhancing digital finance?

5. What are the preferred payment methods in Egypt, and how is the payment landscape changing?

6. How does the cost of remittance within the MENA region compare, and where does Egypt stand?

7. What are the major remittance corridors to Egypt, and which countries have significant Egyptian diaspora?

8. What is the demographic profile of Egyptians abroad and migrants coming to Egypt?

9. How are geopolitical tensions and migration flows affecting Egypt’s remittance market?

10. Who are the key players in Egypt's remittance market, and what is the investment landscape?

11. What major mergers, acquisitions, and funding trends are shaping the Egyptian remittance market?

12. What future opportunities could drive growth in Egypt's remittance market? Show more