The Egyptian Society of Investment Professionals (CFA Society Egypt) held its annual conference on Saturday, February 15, 2025, with a large attendance of investment professionals and university representatives.
Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority, delivered the keynote speech at the conference, beginning by thanking CFA Society Egypt for organizing this important event. He noted that this was his eleventh year participating in the conference, either as a judge or a speaker.
Dr. Farid emphasized the importance of relying on technology in the investment field, stating that while the human element remains crucial, it must be coupled with modern technological methods. He announced the release of “Robo-Advisory for Investment” by the Financial Regulatory Authority, in implementation of Law No. 5 of 2022.
Dr. Farid revealed the development of two new legislations and regulations, one being Robo-Advisory in the insurance sector to enable people to compare their insurance products electronically, and the other being Robo-Advisory related to the selection of investment funds. He pointed out the surge in the variety of fund types available in the Egyptian market, including precious metals funds, which were not previously available. He stressed the importance of enabling investors to compare fund performance and choose the most suitable one based on their investment profile.
Dr. Farid highlighted the necessity of empowering investors through technology, whether via Robo-Advisory or electronic contracts (e-contracts) that rely on Blockchain technology. He confirmed that these e-contracts would be reliable in courts, facilitating the investment process and increasing the number of investors. He also noted the significant improvement in capital markets, where the market index has risen from 8,000-9,000 points in August 2022 to the thirties currently, with daily trading volumes reaching EGP 4 billion.
Dr. Farid emphasized the importance of cumulative gradual investment and savings to create wealth and called for increased awareness of the importance of investment. He also urged CFA Society Egypt to organize competitions related to ESG (Environmental, Social, and Governance), highlighting the importance of these factors in evaluating companies.
In conclusion, Dr. Farid stressed the importance of continuous learning, noting that the journey in seeking science and knowledge has a significant return that we must value. He thanked the society for its efforts in organizing this event and expressed his wishes for the continuation of these competitions and support of the people.
Interview
Success Story
During the annual conference, an inspiring success story was presented of a student who participated in the first “CFA Research Challenge” held in February 2012. This student, Mr. Youssef Salem, has now reached a very important position as Chief Financial Officer of ADNOC Drilling. The interview was moderated by Mr. Ashraf El-Khatib, Vice President of CFA Society Egypt.
El-Khatib began the interview by presenting the story of the first CFA Research Challenge in 2012, where only five universities participated in the competition, and Youssef was part of the winning team. After many years, Youssef returned to the competition but this time as a member of the judging panel. El-Khatib asked him about his impression comparing the 2012 competition versus today’s and his impression of the students participating in the competition.
Youssef replied, “Allow me first to thank you very much for this invitation. It is a great honor for me to be here with all of you. You are all my professors, and as you mentioned, I started in 2011 in the first year of the competition with you, Mr. Ahmed, and Dr. Farid. For us, you are still the role models we aspire to reach. It is a tremendous honor to be here today and to speak with you. The level we saw today from the students was amazing. The level of analysis and presentations was world-class. All teams presented a higher level than what we see in practical life. This is truly something to be proud of.”
El-Khatib then asked him for advice for young people on how to choose the beginning of their career path and whether it is necessary to continue in the same field they started in. Youssef answered, “The most important thing is to start from a certain point. Everything you do will have an impact in the medium and long term. I started at the American University in Cairo where we had a business writing course. We were required to write a resume and a cover letter and choose an internship from the university portal. I applied for an internship with an investment bank, which turned into a full-time job. Also, after finishing the CFA Challenge in 2011, I studied Level I of the CFA Program, which opened new opportunities for me. The main idea is to try to open opportunities as much as possible through challenges, exams, internships, and networks. The most important thing is to be in a place where you can learn, whether it is an investment bank, a company, or a startup. It is key to be part of a team capable of teaching and benefiting you.”
El-Khatib also asked him about the importance of ESG and what new skills young people should learn. Youssef answered, “As a financial sector, we have a good opportunity in new sectors such as sustainability and artificial intelligence. These sectors did not exist in companies before, and thus the financial management can take these departments. For sustainability, if we divide it into disclosures and taxes related to carbon emissions, we find that financial management plays an important role. A person should be willing to learn, and technology is constantly changing. This is evident in interviews.”
The interview was inspiring and highlighted the importance of continuous learning and opening new opportunities in the journey of professional success.
Panel Discussion
The Butterfly Effect: Understanding the Ripple Effects of Geopolitics, Economics, and Markets on Asset Performance
In line with CFA Society Egypt’s interest in addressing the economic challenges faced by the Egyptian people and the necessity of understanding the cascading effects of geopolitics, economy, and markets on asset performance, Mr. Ahmed Abou El-Saad, Head of Regional Asset Management at Azimut Group for the Middle East, North Africa & Turkey and President of CFA Society Egypt, moderated a panel discussion titled “The Butterfly Effect: Understanding the Ripple Effects of Geopolitics, Economics, and Markets on Asset Performance.”
Mr. Amr Abo Elazm, Co-Founder, CEO and Vice Chairman of Erada Microfinance, began the discussion by indicating that companies and individuals make their decisions based on global effects. He pointed out that if many investors who entered the market in 2022 had expected what is happening now, they would have reconsidered their investment decisions in light of the current situation. He emphasized the importance of awareness of management and investment decisions that led to the erosion of growth in some sectors at the expense of others, and the necessity of focusing on cost management and cash flows.
Mr. Hisham Akram, Founder and Director of Granite Holding, then discussed the situation at the regional level. He indicated that the region has gone through many events that had a butterfly effect, whether at the level of Egypt like the Luxor incident in 1995 or globally (such as the Global Financial Crisis in 2008) or regionally (such as the events in Tunisia that sparked the Arab Spring). He confirmed that the region has always faced challenges but has always risen again.
Mr. Hany Genena, Head of Global Research at CI Asset Management (CIAM), pointed out that foreign investments in the local market tend to maintain their presence more than expanding until the geopolitical tensions in the region stabilize. He added that the inflation rate has been diminishing on a monthly basis, and he does not see a single reason for Egypt to maintain interest rates as in order to attract indirect investments.
Abou El-Saad concluded the discussion by emphasizing the importance of understanding the cascading the effects of geopolitics, economy, and markets on asset performance, and the necessity of making informed investment decisions amid current challenges.
The American University in Cairo Wins
Egypt Research Challenge 2025
The annual conference featured the final round of the Egypt Research Challenge 2025, organized by CFA Society Egypt for the fourteenth consecutive year, selecting the best investment research report, applying fundamental analysis to determine the fair value of “Cleopatra Hospital’s (CLHO)” stock. With the participation of 24 universities, eight universities qualified for the final round, namely (in alphabetical order) Ain Shams University, Alexandria University, Cairo University, Future University in Egypt, Helwan University, Misr International University, The American University in Cairo, and The British University in Egypt.
The conference concluded with the announcement that The American University in Cairo won first place in the annual Egypt Research Challenge 2025. The British University in Egypt secured second place, while Ain Shams University clinched third place. The teams from The American University in Cairo and The British University in Egypt will represent Egypt in the regional competition for the Europe, Middle East, & Africa (EMEA) region, leading to the Global Final in May 2025. Additionally, the team from The American University in Cairo will represent Egypt in the Middle East competition in April 2025.
On the sidelines of the conference, Mr. Ashraf El-Khatib, Vice President of CFA Society Egypt, announced the annual training and job opportunities program for students from the eight finalist teams. These opportunities have been provided by the society in major banks, investment firms, and companies in Egypt. It was also announced that CFA scholarships, named after Ms. Mervat Sultan, former Chairwoman of Export Development Bank of Egypt, have been offered by her family.
Additionally, those who were awarded the CFA charter, Certificate in ESG Investing, and Data Science for Investment Professionals certification during 2024, issued by CFA Institute, were honored. The university teams participating in Egypt Research Challenge 2025 and the volunteers who contributed to the success of the competition were also recognized. The judging panel included (in alphabetical order) Mr. Ahmed Sobhy, Chief Investment Officer at Banque Misr, Mr. Maged Ezzeldeen, Egypt Senior Partner at PWC, Mr. Wael Ziada, Founder & Executive Chairman of Zilla Capital, and Mr. Youssef Salem, CFO of ADNOC Drilling.
