Egypt’s M&A Activity On The Rise

August 14, 2022


Saudi Arabia’s sovereign wealth fund announced the acquisition of minority stakes in four Egyptian state-owned companies listed on EGX for a total of $1.3 billion. The companies are Abu Qir Fertilizers and Chemical Industries, Misr Fertilizers Production Co., Alexandria Container and Cargo Handling, and payments firm E-Finance for Financial and Digital Investments.

As of August, Saudi Arabia’s investments in Egypt reached $32 billion via 6,800-plus companies. That includes 14 investment agreements signed in June worth $7.7 billion.

Egypt has had a bumper M&A year. In August, a report from Ernst & Young said Egyptian companies signed 65 deals worth $3.2 billion in the first half of 2022. After the U.A.E, Egypt had the second most deals in the MENA region by value and number.

That is more than triple the number of M&A deals signed during the first half of 2021. The EY report cited “favorable government initiatives, including special licenses for foreign investors,” as the main drivers for the increase.

Abu Dhabi Sovereign Wealth Fund accounted for $1.8 billion of those deals, purchasing several EGX-listed companies.

Gulf Cooperation Council countries should remain a significant driver of M&A deals in Egypt, as surging oil prices and the peg to an appreciating dollar mean deals will become more financially feasible.