Al-Sisi reviews Egypt's food security, strategic commodity reserves    Egypt signs strategic agreements to attract global investment in gold, mineral exploration    Syria says it will defend its territory after Israeli strikes in Suwayda    Egyptian Exchange ends mixed on July 15    Suez Canal vehicle carrier traffic set to rebound by 20% in H2: SCA chief    Tut Group launches its operations in Egyptian market for exporting Egyptian products    China's urban jobless rate eases in June '25    Egypt's Health Minister reviews drug authority cooperation with WHO    Egypt urges EU support for Gaza ceasefire, reconstruction at Brussels talks    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Egypt, Mexico explore joint action on environment, sustainability    Egypt, Mexico discuss environmental cooperation, combating desertification    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger        Sisi launches new support initiative for families of war, terrorism victims    Egypt's GAH, Spain's Konecta discuss digital health partnership    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Abraaj says committed to Egypt's market, refutes corruption allegations
Published in Daily News Egypt on 30 - 10 - 2011

CAIRO: Abraaj Capital, the Dubai-based private equity firm, continues to see Egypt as an investment hub for the region despite the political uncertainty that is weighing down on the country's volatile economy, managing director Mustafa Abdel-Wadood said.
"Egypt has always been a core market for us in terms of our investment geography even though our investments span from Morocco to Indonesia," he told Daily News Egypt.
"If we look at the Middle East area specifically, Egypt is attractive for a number of reasons, even in the context of the short term volatility. It is a diversified economy, there is a large population and a relatively young population and there is also a high consumer demand."
Over the past four to five years, Abraaj has deployed $2 billion into Egypt's market, making it one of their largest targets, geographically.
While there is no vision for new ventures in the near future, according to Abdel-Wadood, the firm has around $1 billion invested in Egypt today and it hopes to see these investments grow further in this upcoming period.
"We've helped grow Al Borg Labs. We've done the same with Spinney's [supermarkets]," he said, "The existing investments we continue to invest in them and grow them."
With Egypt's growing need for job opportunities at a time where many ventures have been halted as investors lose confidence in the market during the transitional period, Abraaj has dedicated a regional fund for small and medium enterprises (SMEs) that considers Egypt as one of the "core areas."
"We've been looking at Egypt's SMEs base. We've already done a couple of transactions, one of them is an IT company called OMS [and] the other is Agro Corp., which produces agricultural products and imports them," Abdel-Wadood added.
"These businesses have strong growth profiles and we are investing in them right now."
Both transactions were signed and completed after the January 25 uprising that ousted Hosni Mubarak.
Despite Abdel-Wadood's optimism, he noted that there has been instability in the government's policies towards private investments and businesses.
"We believe in the opportunity in this market but we just have to take a very cautious approach until there is more visibility around direction, in the context of economic policies. And you can only get that as you move from a transitional period to a new leadership that sets that in place," he said.
Abdel-Wadood stressed that while there should not be "special" treatment for businesses, the government should make it a priority to regulate and facilitate laws for investors so that the future of business ventures can be clear.
Despite the need for political and social change, he added, it is still the government's role to create transparent laws that would not allow for corruption and theft.
"We understand there are other priorities at the moment, at least in the short term in terms of focus on political and social agenda, but you cannot let economic policy and the business agenda take a backseat. It is critical for the long term growth in this country," he explained.
Without the proper facilitation for businesses and investments, the country, which has booming younger generations, cannot create the proper jobs that are needed for social advancement, he pointed out.
In the period following the January 25 uprising, instead of creating new economic policies and transparent laws for business, the country has taken another direction.
Several companies have seen their licenses revoked and many businesses have been targeted for previous dealings and transactions that took place under the Mubarak administration.
In September, an administrative court in Cairo suspended the privatization contracts of three companies, sparking fear among local and international investors.
"One of the challenges that increased volatility as well is that there's a strong populist anti-private sector sentiment, which frankly is not very encouraging. We realize these are short term sentiments, but to the average investor that is a challenge. The other challenge is the business agenda has taken a big backseat," he said, "Not to say we won't invest in this period; we will just be more cautious."
In September, Abraaj came under fire from one of Egypt's most prominent shows, "Akher Kalam" hosted by Yousri Fouda which is now off air.
Fouda had criticized the company, along with several other firms, for being stakeholders in one of the leading investment banks in the Middle East and North Africa region, EFG Hermes.
Hosni Mubarak's son, Gamal, who is currently on trial for financial corruption and using his father's authority to facilitate business deals, also had shares in EFG.
Fouda's episode alleged that Abraaj capital was somehow associated with the previous regime and their business web.
Abdel-Wadood stressed that the accusations brought up in Fouda's show were poorly reported, researched, and simply "not true."
"We owned shares in EFG for a period of time in 2006-2007, and I said that, but so did 15,000 other people," he added. "These allegations about our involvement with the previous regime were completely baseless."


Clic here to read the story from its source.