The two acquired financial entities Capital Trust Co. (S.A.E.), Cairo, specializes in Asset Management and Misr International Securities (S.A.E.), Alexandria, and specializes in securities and brokerage. Both entities were purchased with an aim to broaden Global's immense investment opportunities present in the favorable Egyptian market.
Mr. Omar M. El-Quqa, Executive Vice President at Global said, "The acquisition of the two Egyptian companies will mark a greater presence for the company in the region. With our expertise and vision, Global will provide the investment community in Egypt with products and services that will exceed their expectations." Global's presence in the Egyptian market is set to carry out various financial services such as; the establishment and management of investment funds, portfolio management, brokerage, private and public placement, underwriting, advisory, dealings as a principal and as agent, and custody.
It is worth highlighting Global aims to play an effective 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.
"Global currently operates in 16 countries including branches and representative offices in Saudi, Bahrain, Qatar, Dubai, Abu Dhabi, Yemen, Jordan, Sudan and India. We firmly believe in the importance and necessity of having a direct presence in the Egyptian market and to take advantage of this huge economy and capital market," added El-Quqa.
In 2006/07, the GDP of Egypt grew by 7.1%, exceeding all expectations about growth. The development in the economy in recent years is attributed to stronger non-oil export growth, resurging tourism, rising Suez Canal receipts and better spending power and overall investment climate.
In addition, Foreign Direct 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 government of Egypt remains committed to improving investment climate.
In 2007, 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 earnings. After a 17% increase between 2005 and 2006, the market capitalization surged by 44% at the end of 2007 compared to 2006.
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 stock 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.
Mr. El-Quqa expects the outlook for Egypt to continue to be positive and investments to continue at 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.
On the other side, Mr. Sameer Al-Alayli, Vice Chairman and Managing Director of Global in Egypt said, "Global's recently launched Global Egypt Fund 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." Al-Alayli ended by saying that that Global clients will continue to receive the same high quality of investment banking services, which our regional investors have come to expect. Global's committed to deliver excellent financial and investment products and services that go beyond markets' expectations, with a strong commitment to leadership, ethical approach, creativity, and innovation that led to Global's impressive results with recognition to several local and international awards.
About Global Investment House "Global" Global Investment House "Global" is a full-fledged investment company incorporated in 1998, and falls under the regulation of the Central Bank of Kuwait. Its underlying foundation is to meet the high expectations of local and international clients, and to enhance the investment service industry and the capital market in Kuwait and the region. Today, Global stock lists on the Kuwait, Bahrain, and Dubai Stock Exchanges, with branches and affiliates in Bahrain, Dubai and Abu Dhabi (UAE), Jordan, Qatar, and Sudan. Global plays an important role in promoting investment opportunities in the Arabian Gulf Peninsula to investors through expert financial engineering, in-depth research and reports to advance the capital market in the region. Thus, Global's achievements have been recognized on local, regional, and international levels. The company's current assets under management reached KD2.3 billion (USD 8.6 billion) by end of 2007.
(C) 2008 Al Bawaba (www.albawaba.com)
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