ADQ buys stakes in key Egyptian companies

ADQ on Wednesday said it executed several transactions in public-listed companies within key sectors of Egypt’s economy, building on its long-term commitment to investing in the country’s economic growth through its $20 billion joint strategic investment platform.

The Abu Dhabi-based investment and holding company said its investments in the Egyptian companies reflect ADQ’s continued confidence in the country’s strong economic potential.

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; Misr Fertilisers Production Company (MOPCO) and Abu Qir Fertilisers & Chemical Industries, two key industrial companies in Egypt.

On Tuesday, Reuters said Abu Dhabi’s state holding company has bought shares worth $1.85 billion in five publicly traded Egyptian companies, helping Egypt after the Ukraine crisis prompted foreign investors to flee.

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 per cent. 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.

— muzaffarrizvi@khaleejtimes.com