Despite regulatory progress, technological advancements, and increasing market demand, the adoption of robo-advisors in Egypt remains in its nascent stages with most institutions still evaluating business cases, developing internal systems, or piloting limited offerings, according to a new report by Zawya, a financial news and intelligence platform specializing in the Middle East and Africa (MEA).

The report, released earlier this month, examines the state of the robo-advisor industry in Egypt and globally, highlighting the technology’s potential, business opportunities within the sector, and the challenges that remain.

Challenges remain in Robo Advisory Market in Egypt

The report notes that while robo-advisors in Egypt have developed, the sector is still in its early stages.

Thndr, an Egyptian wealthtech app with about 500,000 active monthly users and US$1.8 billion in trading volume processed, currently leads the market. But aside from a few apps, most robo‑advisor initiatives remain in pilot phases, with client adoption still limited. Moreover, among established institutions, asset managers continue to be cautious about partnering with technology firms.

The report highlights several structural factors contributing to this slow development stage.

Firstly, distribution remains a challenge. Although robo-advisory platforms rely on digital channels for onboarding and servicing, digital reach does not automatically translate into investment engagement. This often depends on integration with banks, payroll systems, or employer-sponsored savings schemes. However, these areas are where the Egyptian ecosystem is still developing.

Secondly, investor awareness and trust are still limited. Automated investment advice requires a baseline level of confidence in both financial institutions and capital. However, Egyptian retail investors have experienced periods of high volatility, inconsistent performance, and limited transparency, making trust in algorithm-driven decision making challenging.

Thirdly, the size of the addressable market for paid investment advice is relatively small. Although Egypt boasts a large population, disposable income and investable financial assets are concentrated among a limited segment. Consequently, for many households, surplus savings cannot justify even low advisory fees, especially when alternative options like real estate, liquid cash, or gold are perceived as more tangible.

Finally, the structure of the market presents challenges. The depth and liquidity of local capital markets are limited and uneven across asset classes, which can affect the effectiveness of automated portfolios. Factors such as limited sector diversification, concentration risk, and intermittent liquidity can complicate asset allocation models, which are based on more developed markets.

Significant potential

Despite these challenges, the potential of robo-advisors in Egypt is significant, driven by several factors. Firstly, Egypt is home to a growing middle class, along with increased financial literacy. This has sparked interest in investment options beyond traditional savings accounts and assets.

In addition, the country has seen increased technological advancements, characterized by improved mobile penetration and Internet accessibility. This has facilitated the acceptance of fintech solutions among Egyptian consumers.

Additionally, Egypt has experienced a surge in its fintech ecosystem over the past years, with homegrown leaders such as Paymob, Paysky, and Lucky Financial becoming regional leaders. This ecosystem has also witnessed the emergence of new startups like Wilzy, Nawy, and Palm, which are exploring the robo-advisory space in Egypt and offering various digital investment solutions tailored to local needs.

Lastly, the improved regulatory environment has played a crucial role. In 2024, Egypt’s Financial Regulatory Authority (FRA) issued a set of regulations governing automated investment advisory services, enabling businesses to offer algorithm-driven investment advice in Egypt’s capital markets.

For incumbent asset managements and financial institutions, robo-advisors represent both an opportunity and a strategic question, the report says. The opportunity lies in improving operational efficiency, standardizing portfolio construction, and extending services to smaller accounts. Conversely, the strategic question revolves around positioning and determining whether the robo-advisor will serve primarily as a distribution channel, a servicing tool, or an integral part of an investment strategy.

In this context, the report advises for hybrid models which combine automated portfolio management with occasional human interaction to foster trust and address behavioral issues. For example, a robo-advisor could manage routine tasks like rebalancing and reporting, while human advisors could concentrate on client education, goal setting, and managing expectations.

Fintech in Egypt

Over the past years, the fintech industry has experienced significant growth in Egypt. According to Entlaq’s Egyptian Fintech Landscape 2024 report, Egypt currently boasts approximately 140 fintech-focused startups. Among these, 70 companies are non-banking financial services (NBFS) entities licensed by the FRA that have commenced digitizing their operations. They include market leader MNT-Halan, a fintech platform offering loans, prepaid cards, e-wallets, savings, and e-commerce services, and the country’s first unicorn startup.

Egypt recently witnessed the licensing of its first digital banks, further fueling the fintech momentum. In May 2024, the Central Bank of Egypt (CBE) granted Misr Digital Innovation Company (MDI) initial approval for the launch of the first digital bank in Egypt. Dubbed Onebank, the digital bank promises a seamless experience that blends technology, security and a lifestyle-centric approach to banking, all in a single platform. The digital bank has yet to launch.

In October 2025, ezbank followed suit, receiving its digital bank license. Backed by QNB Group, one of the largest banking groups in the MEA region, the digital bank seeks to combine advanced digital technology with international best practices to offer seamless financial services to a broad customer base. It says it will use mobile-first platforms, AI-driven tools, and smart risk management to make transactions easier, increase access, and support Egypt’s digital economy.

Digital financial services has seen a significant uptake in Egypt. In 2024, digital transactions reached EGP 2.5 trillion (US$52 billion), according to Wired, and by June 2025, InstaPay, the country’s instant retail payment system, had handled 1.1 billion transactions worth US$48 billion since its launch in early 2022. So far, 120,000 digital verification processes have been conducted, with 60% of them taking place in the capital market, and 80,000 digital contracts have been issued in the market.

The surge in fintech usage has resulted in a substantial increase in financial inclusion. In mid-2025, financial inclusion in Egypt reached 76.3%, marking a remarkable 214% increase from 27.4% in 2016, according to the CBE.

Featured image: Edited by Fintech News Middle East, based on image by thanyakij-12 via Freepik