Key Takeaways from the 19th Annual One-On-One Conference Opening Session Exploring MENA’s Investment Playbook – Part One

EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA), inaugurated the 19^th Annual EFG Hermes One-on-One Conference on April 7^th, 2024.

The signature event, which is this year hosting 220 companies from 12 countries and welcoming 675 institutional investors and fund managers representing 252 global institutions, stands as the world’s largest investment forum dedicated to MENA. The conference will run until April 10^th, 2024, at the JW Marriott Hotel Marina.

Highlights from the opening session included:

·        A keynote speech by EFG Holding’s Group Chief Executive Officer, Mr. Karim Awad

·        A panel discussion titled Egypt’s Economic Reset? An Inside View with Mr. Rami Aboulnaga, Deputy Governor of the Central Bank of Egypt, moderated by Mr. Ziad Daoud, Chief Emerging Markets Economist at Bloomberg

·        A panel discussion in partnership with DFM titled The Role of Capital Markets in Advancing the UAE’s Long-Term Vision: Opportunities and Challenges with Mr. Hamed Ali, CEO of Dubai Financial Market (DFM) and Nasdaq Dubai; Mr. Hadi Badri, CEO of the Dubai Economic Development Corporation (DEDC) at the Dubai Department of Economy and Tourism (DET) moderated by Ms. Ramia Farrage, Senior Presenter and Producer at Forbes Middle East

Key takeaways from Mr. Karim Awad, EFG Holding’s Group Chief Executive Officer:

Awad welcomed attendees to the 19^th One-on-One Conference, noting that global events in the past few days have dampened investor sentiment and significantly impacted markets both globally and regionally.

·        The current environment of uncertainty doesn’t help companies or investors and necessitates transparent dialogue in order to quantify impact and support falling market capitalizations. 

·        We’re gathering here today at a pivotal time, and the strength of this conference lies in its scale and timing. As the first forum of its kind to be held since the newly imposed US tariff regime, with 220 companies from 12 countries presenting and participation from 675 institutional investors and fund managers representing 252 global institutions, I believe this is the ideal forum to identify new opportunities in the wake of this latest storm.

·        There’s one company I want to spotlight today that’s especially close to my heart — Valu. Valu has transformed the BNPL space in Egypt and built itself into one of the country’s most recognizable and respected brands. Today, Valu boasts 750,000 active users, posted over USD 8 million in profits for 2024, and continues to grow at impressive rates.

·        We’ve decided to distribute a minority stake in Valu as a dividend to our shareholders in a first of its kind transaction in the Egyptian market, creating an opportunity for investors to gain direct exposure to the company’s growth story, while also benefiting indirectly through their holdings in EFG Holding.

·        According to an independent advisor, the company’s valuation currently stands at USD 300 million.

·        One of the key reasons EFG Holding, and many other Egyptian companies, continue to trade below their true intrinsic value is the sustained absence of foreign institutional equity investors amidst ongoing concerns about the macro picture. However, recent positive changes warrant a fresh look and a deeper analysis from the global investor base. Our markets have not experienced the bull run that others in the region or the US have enjoyed, and many of our strongest companies — operationally sound and growth-oriented — are still trading at unjustifiably low multiples that don’t reflect the growth prospects of these blue chips that have operationally done well despite all the challenges.

Key takeaways from Mr. Rami Aboulnaga, Deputy Governor of the Central Bank of Egypt on Egypt’s Economic Reset, moderated by Mr. Ziad Daoud, Chief Emerging Markets Economist at Bloomberg:

·        Egypt has prioritized building economic buffers to shield itself from external shocks—recognizing that while crises can’t always be avoided, their impact can be minimized with the right tools and preparation.

·        At the crossroads of regional instability, Egypt remains in a constant state of vigilance. Policymakers are leaning toward resilience-driven policies to stay ahead of geopolitical fallouts.

·        The impact of tariffs on Egypt is still being diligently assessed however, there is no doubt that this is a transformational global moment, echoing the volatility of the pandemic. The depth and complexity of the current crisis were impossible to forecast, but Egypt’s focus is on domestic readiness.

·        Egypt has allowed the foreign exchange market to self-correct, using it as a shock absorber rather than resisting adjustment. This move prevents structural imbalances and helps the market reflect real-time economic dynamics.

·        There’s a clear conviction that structural reform is the only way to immunize the economy against external volatility.

·        Egypt is committed to remaining ‘investable’, avoiding knee-jerk policy shifts and instead focusing on maintaining consistent, market-friendly signals.

·        The Central Bank isn’t reacting to headlines, it’s following a natural FX policy grounded in fundamentals. Capital outflows, which happened overnight are justifiable. However, the shocks have been absorbed without artificial controls, letting the market operate independently.

·        While tariff exposure is limited (7% of Egypt’s total foreign trade is with the US), Egypt continues to pursue diversification across regional and global economic blocs to reduce dependency on any single trade partner. From a macro perspective what is needed is to continue to press with integration with more trading blocs.

·        Global ambiguity is not within Egypt’s control. The focus is on what can be controlled: maintaining buffers, enacting sustainable reforms, and pressing forward—unshaken by noise.

·        Egypt’s 2024 FX turnaround tells a compelling story: from -29bn to +10bn USD in NFAs, with a USD 12bn rise in reserves, which currently stand at USD 47bn, and external debt reduction. This validates the power of letting the currency float and tackling vulnerabilities head-on.

·        Policy sustainability means removing volatility in decision-making. The goal is to institutionalize discipline, protecting reforms from political or market noise.

·        The success story isn’t just about numbers—it’s about the confidence Egypt has built among investors, underpinned by hard choices and credible reform paths.

·        Egypt’s asset sale strategy is not just a financing tool—it’s a governance strategy, designed to unlock private-sector value and shift the economy away from debt-dependence.

·        The USD 35bn Ras El Hekma transaction signaled a new investment mindset, one that integrates capital inflows with structural upgrades and governance improvements.

·        The government is actively working to unlock underutilized assets across multiple sectors—not just real estate—to draw in strategic investors and energize the reform program.

·        There’s a clear pivot away from debt markets toward FDI, concessional loans, and development finance. Egypt wants to blend financing sources in a way that keeps its macro path credible.

·        Curbing persistent inflation (previously near 40%) remains central to monetary policy. Egypt is using both conventional and unorthodox tools, with February’s downside surprise as early validation of the strategy.

·        Inflation will continue to trend lower. +-7% continues to be our target through last quarter of 2026.