Az­imut ac­quires Ras­mala Egypt to en­ter Egyp­tian as­set man­age­ment in­dus­try

Ac­qui­si­tion con­sid­ered one of most im­por­tant in Egyp­tian cap­i­tal mar­ket for years: Ras­mala Egypt CEO

The Daily News Egypt - - News -

Az­imut Group,one of Europe’s lead­ing in­de­pen­dent as­set man­agers, signed on Tues­day an agree­ment to ac­quire 100% of Ras­mala Egypt for as­set man­age­ment from Ras­mala Group, an in­de­pen­dent al­ter­na­tive as­set man­age­ment group.

Fol­low­ing the ac­qui­si­tion, Ras­mala Egypt will be re­named Az­imut Egypt As­set Man­age­ment.

Ras­mala Egypt, founded in 1997, spe­cialises in con­ven­tional and Sharia-com­pli­ant port­fo­lio man­age­ment in Egypt, with as­sets un­der man­age­ment (AUM) of EGP 8.46bn ($474m) as of Novem­ber 2018, with strong ex­per­tise in eq­uity strate­gies, rep­re­sent­ing 85% of the to­tal AUM.

Pi­etro Gi­u­liani, chair­per­son of Az­imut Hold­ing stated, “The in­vest­ment in Egypt con­firms our com­mit­ment to­ward ex­pand­ing our MENA and Turkey’s re­gional foot­print which will see Az­imut as the first global as­set man­ager with in­vest­ment teams on the ground in Dubai, Cairo, and Is­tan­bul, with an over­sight on the mar­kets which we ex­pect to at­tract global in­vestors’ sig­nif­i­cant in­ter­est,” he stated, ad­ding “It marks the first move of the group in Africa, a vast re­gion of­fer­ing unique un­tapped op­por­tu­ni­ties for prod­uct man­age­ment and dis­tri­bu­tion ex­pan­sion.”

Ac­cord­ing to the press state­ment, Egypt is the largest econ­omy in North Africa, with a pop­u­la­tion of 95 mil­lion and a GDP-PPP ad­just­ment of $1.1tn as of 2017, con­sid­ered as the 21st world’s largest. Fol­low­ing the flota­tion of its cur­rency in 2016, Egypt has em­barked on a sig­nif­i­cant home-grown eco­nomic re­form pro­gramme sup­ported by the In­ter­na­tional Mone­tary Fund and some neigh­bour­ing coun­tries to re­bal­ance its econ­omy, and set the fun­da­men­tals for one of the most at­trac­tive growth sto­ries in the re­gion and across the global emerg­ing mar­kets (EM).

The econ­omy is ex­pected to grow 5% per an­num through to 2020, with for­eign di­rect in­vest­ments ben­e­fit­ing from the re­moval of cap­i­tal re­stric­tions, ma­jor struc­tural de­vel­op­ments in the en­ergy in­dus­try, and a re­vival of the tourism sec­tor to sup­port the im­prove­ment of the coun­try’s ac­count deficit.

Ahmed Abou El Saad, CEO of Ras­mala Egypt stated, “This ac­qui­si­tion is con­sid­ered as the most im­por­tant in the Egyp­tian cap­i­tal mar­ket for years. It marks the first pres­ence of ma­jor in­ter­na­tional in­vest­ment banks in the field of as­set man­age­ment in Egypt, and will en­cour­age in­vest­ment banks to en­ter the Egyp­tian mar­ket, one of the most im­por­tant mar­kets in the Mid­dle East and Africa re­gion,” he de­clared, ad­ding, “This proves the level of ex­cel­lence which Ras­mala Egypt has achieved over the past years to be­come one of the largest as­set man­age­ment com­pa­nies in Egypt, and our team is very happy to join the lead­ing Euro­pean as­set man­age­ment com­pany.”

Az­imut be­lieves that Egypt poses a sig­nif­i­cant op­por­tu­nity for global as­set man­age­ment com­pa­nies due to its fast-grow­ing de­mo­graphic as 60% of the pop­u­la­tion is be­low 30-years-old, and the coun­try has one of the high­est GDP-PPP ad­justed per capita in the EM com­plex, ex­clud­ing the en­ergy ex­port­ing coun­tries. In ad­di­tion to Egypt’s rel­a­tively low mar­ket cap­i­tal­i­sa­tion of the econ­omy, Egypt’s eq­uity mar­ket rep­re­sented al­most 25% of the GDP in 2017 vs 30% in Turkey, and 48% in Brazil.

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