UAE’s ADQ confirms acquisition of Egyptian firms, including CIB bank
Abu Dhabi’s wealth fund ADQ confirmed on Wednesday its acquisition of stakes in five companies listed on Egyptian exchange (EGX), including the Commercial International Bank Egypt (CIB-Egypt).
The move is part of ADQ’s “continued confidence in Egypt’s strong economic potential”, building on its long-term commitment to investing in the North African 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; Misr Fertilizers Production Company (MOPCO) and Abu Qir Fertilizers & Chemical Industries, two key industrial companies in Egypt.” ADQ 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%.”
ADQ added that 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.”
H.E. Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, commented:
“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.” Mohamed Hassan Alsuwaidi, chief executive of ADQ, said.
“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.” Alsuwaidi added.
Since the platform’s inception, ADQ said 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 Egyptian real estate developer SODIC through a consortium comprising Aldar Properties and ADQ, and the acquisition of Amoun Pharmaceutical Company, one of Egypt’s leading pharmaceutical manufacturers, distributors, and exporters.
