Abu Dhabi-based investment and holding company, ADQ, has undertaken several transactions in publicly listed companies within key sectors of Egypt’s economy, building on its long-term commitment to invest in the country’s economic growth through its $20 billion joint strategic investment platform.
The transactions include stakes in Commercial International Bank (CIB), one of Egypt’s largest banks; Fawry, the leading digital transformation and e-payments platform; Alexandria Container & Cargo Handling Company, a prominent logistics player; as well as Misr Fertilizers Production Company (MOPCO) and Abu Qir Fertilizers & Chemical Industries, two key industrial companies in Egypt.
The investments reflect ADQ’s continued confidence in Egypt’s strong economic potential, the firm said in a statement.
The Egyptian economy has proven to be resilient over the past several years. Real GDP growth continues to outpace the majority of emerging market economies with current year projections estimated to reach 5.5 percent.
With its strategic location and the large size of its domestic market, the investments were driven by taking into account the underpinnings of Egypt’s strong domestic consumption, productivity growth, enormous untapped export potential, and positive trade outlook.
The managing director and chief executive officer of ADQ, Mohamed Hassan Alsuwaidi, said: “The UAE and Egypt share a deep relationship underpinned by strong economic and trade ties. Since the inception of ADQ’s $20 billion strategic investment platform with the Sovereign Fund of Egypt, we have executed several investment opportunities in Egypt, with the aim to deliver robust commercial benefits and sustainable growth.
“The recent transactions are a testament to our long-term commitment to elevate our investment partnership with Egypt and continue deploying capital in projects of commercial importance.”
ADQ is a long-term investor in the Egyptian economy, with an office in Cairo. Since the platform’s inception, a number of strategic investments and partnerships have been realised, resulting in strong financial returns.
These include the acquisition of an 85.52 percent stake in The Sixth of October for Development and Investment SAE (SODIC) through a consortium comprising Aldar Properties and ADQ, as well as the acquisition of Amoun Pharmaceutical Company SAE, one of Egypt’s leading pharmaceutical manufacturers, distributors, and exporters.
Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy.
Saudi Arabia pledged $15 billion to support Egypt, making it the latest Gulf state after the UAE and Qatar to back an economy that’s under increasing pressure from Russia’s war in Ukraine.
Qatar is putting up $5 billion for deals in the most Arab populous nation, while Abu Dhabi wealth fund ADQ made a roughly $2 billion deal to buy Egyptian state-owned stakes in publicly-listed companies.
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