CFI Financial Group acquires Egyptian broker El Mahrousa
CFI Financial Group, a multi-regulated FX and CFDs brokerage firm, has taken yet another leap in expanding its footprint within the MENA region. The UAE-headquartered group has acquired Egyptian brokerage firm “El Mahrousa”.
The proposed takeover, which requires signoff from the Financial Regulatory Authority, reportedly bolsters CFI’s position in the region and strengthens its market share. The newly acquired platform will rebrand as CFI Egypt by the beginning of 2023 and will initially kick off its operations in the local stock market.
Egypt, which has a population of over 100 million people, enjoys a high mobile and internet penetration and a tech-savvy population with nearly two thirds below 30. But despite its youthful population, the retail online trading in Egypt has been labelled as an outdated and time-consuming process. As such, the North African country appears to be ripe for a more sophisticated brokerage experience.
CFI Financial Group Co-Founder and Managing Director Hisham Mansour envisions the Egyptian market as one of the potential markets for the group’s expansion in the Middle East and North Africa.
“The acquisition of El Mahrousa in Egypt falls within CFI Financial Group’s strategic expansion plan, in such a growing and vital market, which has always attracted investments”, he said.
Egypt is among the largest economies on the African continent. In 2021, it ranked second with a gross domestic product of roughly $403 billion. Although most economies in the region were faced with contractions due to the pandemic, the country managed to sustain a positive real GDP growth rate as of the same period.
Mr. Mansour further elaborated on CFI’s growth strategy, adding that the group has an expansion plan and is willing to consolidate its presence in selective regional and international markets.
CFI Financial Group revealed in October that over a year-to-date basis, new customer acquisitions jumped by 155% in the first three quarters of 2022. The company also highlighted the progress it made against its strategic roadmap, including plans for obtaining new licenses and opening new offices in MENA, Africa, and Latin America.
CFI Financial, a rival to Middle-East focused brokers like ATFX and ADSS, said the number of active accounts has grown by 80% during the same period. As a result, the company’s trading volumes swelled by 94% so far, even as trading frenzy that gripped markets in 2021 looks to have run out of steam elsewhere.