(MENAFN- Khaleej Times) The Egyptian economy has passed through difficult times and 2015 looks set to be a banner year for offerings, economic experts reiterated at the EFG Hermes 11th Annual One-on-One Conference, which kicked off on Monday in Dubai.
The three-day gathering, regarded as the most highly anticipated annual platform for key global equity investors, high-level executives and industry professionals, brings together government officials and over 450 investors from 200 institutions - with aggregate assets under management of over $10 trillion - with senior managers from 107 companies spanning 14 countries across the MEA.
Participating companies are drawn from a broad list of sectors including financial services, energy, consumer discretionary, consumer staples, telecommunications services, healthcare, industrials, utilities, materials, and real estate and hospitality, and have a combined market capitalisation of nearly half-a-trillion dollars.
Among the key talking points at this year's gathering will be the increase in IPO activities in Egypt, and the anticipated rise in private market transactions in the GCC such as mergers and acquisitions on the back of tightening global liquidity and falling oil prices.
"Tightening global liquidity coupled with falling oil prices are likely to lead to a slower first half in 2015 in the GCC following a very active 2014 for IPOs across the region, however the story is quite different for Egypt which is going through a different cycle" said EFG Hermes head of research Wael Ziada.
Independent market data suggests the region saw $11.5 billion raised across 27 IPOs last year against $3 billion in 2013 in 25 IPOs. EFG Hermes helped lead the regional IPO boom last year, co-leading high-profile transactions including Emaar Malls and Dubai Parks and Resorts in the UAE, as well as Arabian Cement Company in Egypt, the first such offering in the Arab world's most populous nation since 2010. Ziada said the firm expects to see M&A activity led by Egypt as well as consolidation plays in both Saudi Arabia and the regional energy sector. "Egypt has already seen two competitive M&A bids this year in the food sector," he added.
"GCC economies are facing the challenges of low oil prices from a position of strength," added Ziada. "In the UAE, Dubai is a trade and finance hub of growing importance with Expo 2020 to remain a driver of public sector spending growth. Meanwhile, Saudi Arabia is on track to open this year to qualified foreign investors, and while we do not expect significant passive inflows until Saudi Arabia is upgraded to MSCI Emerging Market status, which is not likely to take place until 2017, we do however see the KSA as a very compelling market that will be of interest to pathfinding investors who have long had an appetite for Saudi equities."
"We expect the ongoing economic recovery in Egypt and recent remarks from the new head of the Capital Market Authority in Saudi Arabia encouraging more state-owned companies to list to have both Egypt and Saudi Arabia lead activity in the Mena IPO market in the first half of this year," said Mohamed Ebeid, head of EFG Hermes Securities Brokerage.
"This will be particularly significant in light of the planned opening of the Saudi market to qualified foreign investors, a development presently expected around mid-year."
Opening remarks by EFG Hermes' CEO were followed by keynote interviews with Ashraf Salman, Minister of Investment of Egypt, and Dr George Friedman, founder and CEO of Stratfor, a leading global intelligence company.
In the run-up to the Egypt Economic Development Conference, or EEDC, scheduled to take place on March 13 in the resort city of Sharm El Sheikh, the One-on-One conference will also serve as an opportunity for investors to acquaint themselves with Egypt-based opportunities.
"This year's One-on-One will also provide attendees with insight on Egypt-based opportunities as the Sharm El-Sheikh economic conference approaches," EFG Hermes chief executive officer Karim Awad said.
"EFG Hermes is engaged in partnership with the government of Egypt and other private sector participants to help drive economic growth with the EEDC serving as the first stepping stone in rebuilding investor confidence, and where a roster of investment opportunities will be marketed at Sharm El-Sheikh and beyond signalling that Egypt is once again open for business," Awad added.
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