Thursday 05, July 2018 by Kudakwashe

Emirates NBD to explore equity investments in Saudi Arabia and Egypt

 

The Saudi fund had raised around $52 million and a return on investment of 18 per cent so far, whilst in Egypt the bank is yet to allocate a fund.

  

Emirates NDB has announced that it plans to focus on exploring equity investments in Saudi Arabia and Egypt between now and 2019, reported Zawya.

“At the end of last year, we have identified Saudi as the story for this year and we converted an existing fund of ours into a Saudi fund,” said, Salman Bajwa, CEO of Emirates NBD Asset Management.

The bank is set to raise $100 million by end of this year.

Emirates NBD Asset Management officials see opportunities in transformation taking place in MENA as the countries in the region are diversifying their economies and move away from high dependence on oil.

Saudi Arabia’s Vision 2030 will increase foreign direct investment through different vehicles among them an increase in local workforce which will reduce remittances hence boosting the country’s high foreign reserves, a good indicators of the kingdom’s economic development. 

The Saudi Arabian Monetary Authority (SAMA) reported a 6.74 per cent decline in the kingdom’s foreign remittances last year, compared to the previous year

In Egypt, the officials forecast the inflation to drop from the current level of 17 to 20 per cent to 13 to 14 per cent, as well as boosting the economy increasing the production of gas.

The bank’s officials expect an increase in gas production to make the country self-sufficient in a period from two to three years.

  

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