UAE and Saudi investments in 6 Egyptian companies... Market gains and growth opportunities

Emirati and Saudi funds have made large profits by investing in the Egyptian market and buying shares in companies with good financial solvency and good performance, which are listed on the Egyptian Stock Exchange, within a period not exceeding 15 months.

The United Arab Emirates and Saudi Arabia achieved gains amounting to 47.9 billion pounds (equivalent to 1.6 billion dollars) through their investments in stocks listed on the Egyptian Stock Exchange, in a period ranging from 12 to 15 months.

The ADQ Holding Company, one of Abu Dhabi's sovereign funds, and the Saudi Egyptian Investment Company, affiliated to the Saudi Public Investment Fund, invested in 6 Egyptian companies by purchasing shares of up to 25% in one company, from April 2022 to August 2023.

Buying stakes in 6 companies

Since April 2022, the Holding Company and the Saudi Egyptian Investment Company have bought shares in 6 companies: the Commercial International Bank, Alexandria Container Handling, Fawry for Banking Technology and Electronic Payments, Mopco Fertilizers, Abu Qir Fertilizers, and e-Finance for Financial and Digital Investments.

Shares of CIB rose during the period from April 2022 to this August by about 16.6%, Alexandria Container Handling by 266%, Fawry for Banking Technology by 16.6%, e-Finance for Financial and Digital Investments by 350%, Mopco Fertilizers by 134%, and Abu Qir Fertilizers by 98%.

Emirati gains

The Emirati holding company made gains of 23.3 billion pounds ($756 million) as a result of buying stakes in 5 Egyptian companies.

On April 13, 2022, the holding company purchased the Egyptian government’s shares in 5 companies listed on the Egyptian Stock Exchange, namely: Commercial International Bank, Alexandria Container Handling, Fawry for Banking Technology and Electronic Payments, Mopco Fertilizers, and Abu Qir Fertilizers.

The stock value of the 5 companies

The value of the shares of the five companies at the time of executing the deal at the end of the April 13, 2022 session was estimated at about EGP 30.7 billion. However, after 344 trading sessions on the Egyptian Stock Exchange within 15 months until the end of the August 6, 2023 session, their market value rose to record EGP 54 billion.

These stocks achieved market gains during 15 months, amounting to about EGP 23.3 billion, according to official data on the Egyptian Stock Exchange website, taking into account the fluctuation of a number of stocks throughout the period. They had achieved significant gains and then declined, but they did not give up all the gains.

Saudi gains

The shares of the Saudi Egyptian Investment Company, affiliated to the Saudi Public Investment Fund, in 4 Egyptian companies that were acquired on August 10, 2022, achieved gains of about 24.8 billion pounds (equivalent to 804.7 million dollars) after a year and 10 days had passed.

The market value of the shares that the Saudi Sovereign Fund acquired, namely: e-Finance for Financial and Digital Investments, Abu Qir Fertilizers and Chemical Industries, Mopco Fertilizers, and Alexandria Container Handling, rose to 41.8 billion pounds (equivalent to $1.4 billion) during 270 sessions, a year and 10 days after the implementation. The deal, for 16.88 billion pounds (equivalent to 548 million dollars).

The shares of the Saudi company in Egyptian companies

On August 10, 2022, the Saudi Egyptian Investment Company, affiliated to the Saudi Public Investment Fund, acquired about 25% of e-Finance for Financial and Digital Investments, 19.82% of Abu Qir Fertilizers and Chemical Industries Company, 25% of Mobco Fertilizers, and 20% of Alexandria Tadawul. containers.”

The market value of the shares was determined according to the stock market closing price on August 10, which witnessed a change in some stock values at the end of the session from the original deal price, especially the e-finas share, whose price rose to 17.3 pounds from 3.8 pounds only about a year ago, and Mopco, which closed at 233.6 pounds, up from 57.3 only, at the time of executing the acquisition.