Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Federal Reserve maintains interest rates    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    I won't trade my identity to please market: Douzi    Sisi calls for boosting oil & gas investment to ease import burden    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    58 days that exposed IMF's contradictions on Egypt    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    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    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    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.



Gulf Banks Ready To Invest In Egypt
Published in Amwal Al Ghad on 20 - 12 - 2012

Gulf banks are betting on Egypt despite anti-government protests continuing in several cities.
Hot on the heels of Qatar National Bank's deal last week to buy Société Générale's Egypt's unit for $2bn, Dubai government-controlled Emirates NBD is looking to buy BNP Paribas' Egyptian retail banking business, according to people familiar with the deal.
Egypt in transition
While most analysts agree that Egypt's combination of large population and diversified economy means it is an appealing place to invest, few international buyers outside the oil-rich Gulf are willing to take the political risk involved.
“There is a risk but we are confident in the future of Egypt, politically and financially," said Ramzi Mari, chief financial officer at Qatar National Bank. “This is the right time. If you miss this chance, in a year's time everything will settle down and opportunities will be very limited."
As western lenders downsize amid tighter capital adequacy ratios, the Middle East has been a target for scaling back. As they have done so, the region's liquid government-backed banks such as National Bank of Abu Dhabi and Qatar National Bank are ready to snap up business.
But political unrest has shown little sign of calming in recent weeks as tension has mounted over the passage of an Islamist-backed draft constitution, prompting more street protests.
Analysts argue that state-backed QNB's move is not purely commercial, but political too, as Qatar has been a supporter of the new Muslim Brotherhood-led government and one of the first to invest in Egypt since the revolution. QNB is 50 per cent owned by Qatar's sovereign wealth fund and the remainder is traded on Doha's stock market.
The gas-rich Gulf state has invested billions of dollars in Egypt over the past year. Qatar Petroleum International helped Egyptian private equity firm Citadel Capital to seal its $3.7bn petroleum refinery project in June. It later announced a liquefied natural gas project with the same Egyptian firm.
QInvest, a Qatari-state backed investment bank agreed this year to split off EFG Hermes' banking business into a joint venture in which it would take a 60 per cent stake.
While Dubai-based Emirates NBD has not confirmed its interest in BNP Paribas' Egyptian assets, Rick Punder, the Dubai Bank's chief executive, has told local media that Egypt was underbanked and its large population means it has potential.
Saudi Arabia and Qatar have stepped up their financial support to Egypt, injecting hundreds of millions of dollars to shore up the central bank's foreign reserves.
“When the Gulf states started saying at the beginning of the Egyptian revolution that they'd be financially supportive – there was a lot of skepticism. But now, the money is making its way to the system," says Daniel Broby, chief investment officer at Silk Invest, the investment boutique in London.
The Gulf states are more comfortable with the level of risk involved and as western banks reduce their debt and are effectively split up, the days of riskier bets such as Egypt are “long gone," Mr Broby adds.
QNB's acquisition of the 77.17 per cent stake in National Société Générale Bank is only the latest example of wealthy Gulf banks stepping in to fill the shoes of European lenders.
Financial News


Clic here to read the story from its source.