Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Resumption of production at El Nasr marks strategic step towards localising automotive industry: El-Shimy    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    United Bank achieves EGP 1.51bn net profit in H1 2025, up 26.9% year-on-year    After Putin summit, Trump says peace deal is best way to end Ukraine war    Jordan condemns Israeli PM remarks on 'Greater Israel'    Egypt's Supreme Energy Council reviews power supply plans for 14 industrial projects    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egyptian pound closes high vs. USD on Tuesday – CBE    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    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    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.



Schroders MENA fund aims for $1 bln, eyes Egypt
Published in Daily News Egypt on 17 - 11 - 2009

DUBAI: Schroders Middle East and North Africa fund will be heavily weighted toward Egyptian and United Arab Emirates construction stocks as it seeks to quadruple its size to $1 billion in 2010, fund manager Rami Sidani said.
The fund believes fast-paced economic growth and a rising population make Egypt the best investment pick in the MENA region, along with UAE construction stocks and Turkey s financial sector.
Sidani, who manages the $225 million Dubai-based Schroder International Selection Fund Middle East fund launched in September 2007, told Reuters Television in an interview: Egypt in North Africa is like China in Asia ... The country is the most compelling story in the MENA.
With stock market stabilization and the recovery of the oil price, our target is to reach $1 billion in 2010, he said.
The fund aims to maintain a 10 percent exposure to the Egyptian market within the next couple of months but could increase this figure.
The fund s top holdings are still Turkey- and Gulf-centric, with Turkiye Garanti Bankasi accounting for 7.5 percent, Saudi Arabia s SABIC at 7 percent, Emaar Properties at 4 percent, and Qatar Industries at 4 percent.
It has underperformed Middle Eastern markets by 12.2 percent and the MSCI Arab Markets benchmark by 8 percent in the year to September 2009. The Arab benchmark has in turn lagged the MSCI Emerging Markets Index this year.
Sidani said a sharper risk appetite, recovering oil prices and rebounding equities would herald a turnaround in the fund s fortunes.
Our markets have lagged other emerging markets by more than 30 percent, so we expect our regional markets to start playing catch-up and outperform other emerging markets in the short and medium term, he said.
He said UAE infrastructure and construction companies that are recipients of increased government spending would constitute his top picks in the Gulf Cooperation Council (GCC) in 2010.
Crude oil prices, hovering around $80 bpd in the past weeks, have moved in step with global stocks, with investors viewing both as key indicators of economic health.
We play the role of a gateway for international investors into the region. We have the (players) and the local expertise to channel this money into the GCC, as not all of these markets are on the radar screen of international investors yet.
Egypt play
Sidani said he saw strongest potential in Egypt, where the EGX 30 index has recovered from a six-month low hit in July.
Egypt is the biggest market we focus on within our investment universe, a huge population of more than 80 million people, cheap access to energy, and one of the fastest growing economies in the world. A huge market with huge growth prospects, he said.
The International Monetary Fund (IMF) forecast in its October World Economic Outlook the Egyptian economy will grow by 4.5 percent in 2010 compared to 4.7 percent this year.
We focus on companies dependent on domestic growth which will be less affected by what is happening in the international market, but will benefit from huge government spending in the region, Sidani added.
The dust is finally settling. Valuations are becoming extremely attractive and we see strong inflows of international funds into our markets, he said.


Clic here to read the story from its source.