Global Investment House starts its operation in Egypt
• El-Quqa: Global’s presence in Egypt is significant to the company’s history and is an important addition to Global’s presence in the region.
Global Investment House "Global" just announced its plans and the strategy that it will implement in Egypt.
The announcement came during a press conference held in Cairo on Sunday May 11th, 2008 attended by Mr. Omar El-Quqa, Executive Vice President at Global, and Mr. Samir Al-Alayli, Vice Chairman and Managing Director of Global - Egypt.
Mr. El-Quqa said “Global’s presence in Egypt is significant to the company’s history and is an important addition to Global’s presence in the region; Global will provide added value to the Egyptian capital market and economy. We will provide the investment community in Egypt with products and services that will exceed their expectations”.
Global’s focus on the Egyptian market
El-Quqa added “Global aims to play a major role in the Egyptian capital market by introducing value added investment products and services, a role the company believes to undertake in all the markets and countries in which it operates”. It would also aim to further integrate the Egyptian capital market with others in MENA and GCC in particular. Global currently operates in 16 countries including Kuwait, Bahrain, UAE, Qatar, Oman, Saudi Arabia, Jordan, Tunisia, Sudan, Yemen, Iran, Turkey, India, Pakistan, Hong Kong, and now Egypt.
El-Quqa spoke of the company’s history, as it is currently preparing for its ten year anniversary in the coming months. He said “Since its founding in 1998, Global has grown rapidly to become one of the leading asset management and investment banking companies in the GCC and the wider MENA regions. It has an integrated business offering that comprises five pillars, Asset Management, Principal Investments and Treasury, Investment Banking, Real Estate and Brokerage, which together allow it to provide a comprehensive range of products to its clients.”
Global has one of the largest asset management businesses in the region by reference to assets under management which stands at USD 9.3 billion. Global also has one of the largest principal investment and proprietary trading operations in the region by asset size. As an investment bank, Global is a leading manager of private placements and public offerings and acts as a strategic advisor to corporations, governments, institutions and individuals in the GCC region. Global has access to a client base of approximately 6,500 individuals and institutions.
In recognition of its performance and reputation in the region, Global has won numerous local and international awards, such as Best Investment Bank in Kuwait" in 2007 awarded by Euromoney, "Best Equity House in Kuwait" in 2006 and 2005 awarded by Euromoney and "Deal of the Year Award" in 2006 awarded by The Banker magazine.
Mr. El-Quqa added that the company has launched the Global Egypt Fund early this year to capitalize on the various investment opportunities in the Egyptian capital market, investing primarily in listed equities, initial public offerings, pre-initial public offerings, and private placements. In addition, the company has also published a report on the Egyptian economy in February 2008.
On the other hand, Mr. Al-Alayli said “Foreign investment into Egypt is growing at a rapid pace. The total FDI more than doubled from US$4.1bn in 2004/05 to US$9.1bn in 2005/06 and it further increased by 44% in 2006/07 to reach US$13.1bn. Egypt has become an attractive FDI destination due to its strong growth prospects, privatization and economic reform.
The Egyptian government remains committed to improving the investment climate. On the other hand, The Ques Protocol, also known as the Protocol for Industrial Areas, in addition to the agreement of exempting Egyptian products from taxes in the EU market will make Egypt an attractive FDI destination. In 2004/05, foreign cash reserves increased in a stable manner due to trust in the Egyptian Pound. According to the Central Bank of Egypt, the net of foreign cash reserves totaled US$28.6mn at the end of 2007, with a 24.6% increase from the previous year.
Egyptian stocks, most attractive in the region
In regards to Egypt’s stock market performance in 2007, Mr. Al- Alayli said “the Egyptian stock market, represented in the CASE 30 index, recorded a 51% return. This strong return came on the back of the positive outlook on the Egyptian economy in general with a GDP growth of 7.1% in 2006/07 and the buoyant corporate earning. After a 17% increase between 2005 and 2006, the market capitalization surged by 44% at the end of 2007 compared to 2006.”
He emphasized that the Egyptian stock market is still in the low range in terms of PE and high on the DY (dividend yield), when compared to other Middle Eastern and African markets. The attractiveness of the Egyptian market lies in its relatively cheap valuation, when compared to other strong markets in the Middle East, in addition to strong corporate fundamentals and high growth potential, as well as, the diversity of the traded stocks under different sectors.”
Regarding the outlook for Egypt, Mr. Al-Alayli said “We expect the outlook for Egypt to continue to be positive and investments to continue at a high rate in the coming months, supported by buoyant business confidence. The efforts of the government to improve the business environment and privatization of smaller state-owned companies will keep the investment at a higher level. A number of large-scale infrastructure projects will also sustain investment, helped by oil-driven liquidity from the Gulf.
Mr. El-Quqa ended the press conference by emphasizing on Global’s interest in the Egyptian market, and its commitment to provide added value to the Egyptian capital market, economy and investors. He also thanked all the regulatory authorities in Egypt for their efforts.
