INTERNATIONAL INVESTMENTS INCREASE IN EGYPT
Interest in the Egyptian financial market from foreign investors is increasing with the latest company Electrolux signing a deal with Egyptian appliance maker Olympic Group.
The 2.4 billion Egyptian pound all-cash deal will see Swedish-based Electrolux have a 52 percent stake that Olympic’s parent company Paradise Capital owned.
This is more good news for Egypt, which has seen other large investments including $4 billion from Saudi Arabia and $2 billion from the U.S. recently. The investments will support Egypt’s economy and boost the country’s tourism industry.
President and chief executive of Electrolux, Keith McLoughlin, believes the Egyptian market will return to its pre-uprising growth levels within 18-24 months. When asked by a Reuters journalist why Electrolux chose to invest in Egypt, he commented: “In terms of where the country’s going, the demographics, the growth, the increase in middle-class, we think the future’s bright and now is exactly the right time to make this decision, this acquisition.”
The increase of interest is set to encourage other investors, particularly property buyers who are recognising Egypt as a good place to invest in properties.
Real estate company Amer Group have recently set up two new companies in Egypt called Porto Pyramids and Porto Fayoum, which have a capital of 5 million Egyptian pounds and 10 million Egyptian pounds.
The recent investments will help Egypt form a stable and successful economy and with such a high interest from foreign investors, Egypt is set to have a very positive future. Keith McLoughlin comments: “We think there will be some turbulence, some bumps on the road, as the constitution gets established, as parliamentary and presidential elections occur. We think that’s natural in the formation of democracy.”