Recent acquisitions reflect confidence in Egypt’s economy: ADQ
ADQ completed on Tuesday several acquisitions in five private sector and state-owned companies that are listed in the Egyptian Exchange.
The transactions include stakes in the Commercial International Bank (CIB), one of Egypt’s largest banks; Fawry, a 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.
These transactions build on ADQ’s long-term commitment to investing in Egypt’s economic growth through its $20 billion joint strategic investment platform established in 2019 with the Sovereign Fund of Egypt (TSFE), the company said.
“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,” ADQ added.
ADQ’s Managing Director and CEO Mohamed Hassan Al-Suwaidi noted that the UAE and Egypt share strong economic and trade ties.
“Since the inception of ADQ’s $20 billion strategic investment platform with TSFE, 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,” he added.
ADQ is a long-term investor in the Egyptian economy, with an office in Cairo.
Over 2021, the platform undertook several acquisitions in the Egyptian market, including an 85.5 percent stake in the Sixth of October for Development and Investment (SODIC) through a consortium comprising Aldar Properties and ADQ, and Amoun Pharmaceutical Company, one of Egypt’s leading pharmaceutical manufacturers, distributors, and exporters.