Abu Dhabi’s ADQ Buys Stakes Worth $1.85b in Egyptian Firms

Egyptian Stock Exchange (Reuters)
Egyptian Stock Exchange (Reuters)
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Abu Dhabi’s ADQ Buys Stakes Worth $1.85b in Egyptian Firms

Egyptian Stock Exchange (Reuters)
Egyptian Stock Exchange (Reuters)

Abu Dhabi's state holding company ADQ has bought shares worth $1.85 billion in five publicly traded Egyptian companies. The stock exchange said purchases for five companies were executed on Tuesday but did not say who the buyer was.

The deals included the purchase of 340.1 million shares of Commercial International Bank (CIB), Egypt's biggest private bank, for $911.5 million, and 45.8 million shares of Misr Fertilisers Production (Mopco) for $266.6 million.

They also included Abu Qir Fertilisers and Chemical Industries, which sold 271.6 million shares for $391.9 million, Fawry sold 215 million shares of electronic payments technology for $68.6 million, and Alexandria Container and Cargo Handling sold 476.7 million shares for $159.1 million.

Last December, ADQ established a new office in Egypt to build on its commitment to increase its investment in the country.

The opening of ADQ's new office complements the $20 billion strategic investment platform launched in 2019 between ADQ and the Sovereign Fund of Egypt.

The platform aims to help advance Egypt's economic development through joint strategic investment projects, specialized funds, and investment tools in vital sectors such as healthcare and pharma, utilities, food and agriculture, real estate, and financial services.

Meanwhile, Prime Minister Mostafa Madbouly met with EGX Chairman Mohamed Farid Saleh to review the proposed action plan to achieve digitization and benefit all citizens from investing in the stock market.

The action plan contributes to attracting foreign investments and providing the necessary funding to achieve the sustainable development goals in Egypt's Vision 2030.

The Prime Minister stressed that this meeting comes within the framework of the government's keenness to permanently coordinate with the EGX, adopt and support ambitious plans to achieve financial and investment inclusion.

They also addressed facilitating services through digital transformation to increase the Egyptian market's ability to attract investments.

Saleh presented several indicators related to EGX work during the recent period, which included developing the value of the offerings due to the resumption of the government offering program.

It will also increase the number of investors in the market following efforts to boost the investment environment and promote the stock exchange to serve the listed companies and the Egyptian economy.



Egypt's Net Foreign Assets Slid in October

A general view shows Tahrir Square in Cairo, Egypt July 13, 2020. (Reuters)
A general view shows Tahrir Square in Cairo, Egypt July 13, 2020. (Reuters)
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Egypt's Net Foreign Assets Slid in October

A general view shows Tahrir Square in Cairo, Egypt July 13, 2020. (Reuters)
A general view shows Tahrir Square in Cairo, Egypt July 13, 2020. (Reuters)

Egypt's net foreign assets (NFAs) dropped by $1.12 billion in October after a rise in September, central bank data shows.

NFAs declined to the equivalent of $9.21 billion at the end of October from $10.33 billion at the end of September, according to Reuters calculations based on the official central bank currency rates. The decline followed a $591 million gain in September.

Egypt had been using NFAs, which include foreign assets at both the central bank and commercial banks, to help to prop up its currency since as long ago as September 2021.

NFAs turned negative in February 2022 and only returned to positive territory in May this year.

Foreign assets rose at the central bank in October but dipped at commercial banks while foreign liabilities climbed at both commercial banks and the central bank.