Egypt’s premier investment banking institution is set to bolster its presence in Saudi Arabia, planning a 33% increase in its workforce within the year. The move is part of a wider trend with financial entities enhancing their operations in the kingdom due to a spike in deals.
According to the firm’s CEO, Karim Awad, the bank has already relocated top-tier executives to Saudi Arabia and intends to expand its team from 35 to 47 professionals. The goal is to amplify their market share in both brokerage and investment banking by seizing more deal opportunities.
Saudi Arabia has become a hotspot for major global investment banks, attracting the interest of firms like Rothschild & Co., which recently announced its intentions to establish a Riyadh branch.
Dealmaking prospects in the kingdom are abundant, including a potential $20 billion secondary stock sale of Aramco and various equity offerings from the Public Investment Fund, aimed at funding an ambitious economic overhaul.
EFG, having previously advised on significant public offerings such as those of Ades Holding and Aramco, regards Riyadh as a critical market. The CEO highlighted the market’s liquidity, investor base, and the diverse range of industries looking to list.
With plans to engage in up to six Saudi IPOs, along with several deals across the UAE, Kuwait, and Egypt, EFG is also set to continue recruitment in the UAE, where the workforce counts 130, despite an adequate team size for current operations.
Simultaneously, EFG is closing operations in Singapore and Pakistan, refocusing on markets that align with its strategic interests, such as Kenya. The bank’s trajectory is set to be propelled by expansions in Saudi Arabia, the UAE, Egypt, and Kuwait.
After a 39% surge in net income to 2.5 billion Egyptian pounds ($52.3 million) in 2023, EFG anticipates a strong 2024, driven by its Gulf and Egypt operations and a robust balance sheet.
The bank retains the capability to manage frontier operations for clients, but maintaining a physical presence in certain regions is no longer deemed beneficial for stakeholders.
Regarding Egypt’s prospects, CEO Awad expressed optimism, citing the need for more foreign capital in the stock market to revive the IPO sector. Following economic challenges, Egypt has received over $50 billion in international aid and investments, coupled with significant currency reforms.
With the Egyptian pound undergoing price discovery, Awad forecasts a value range between 43-45 per dollar by year-end, advocating for increased foreign direct investment to sustain the positive momentum.