In this article, we will take a look at 15 of the biggest Egyptian companies. If you want to see more of the biggest Egyptian companies in the world, go directly to 5 Biggest Egyptian Companies.
Egypt has long been a land of wonder. Known for being the land of the Nile and the Great Pyramids, Egypt has manged to capture the imagination of millions around the world.
In addition to having a storied history, Egypt has also had a growing economy with substantial potential.
In recent years, Egypt’s economy has expanded quite rapidly with the country’s economy expanding 6.2% for the past fiscal 2021/2022 year. In terms of the near future, Egypt’s economy could continue expanding.
In July 2022 when inflation wasn’t that big of a problem, Egypt’s state news agency MENA said the government expected the economy to grow 5.5% for the fiscal 2022/2023 year, 4.9% in the 2023/2024 year, and 5.4% in the 2024/2025 year.
Given that inflation is a bigger problem, some economists are predicting slower growth but still expect Egypt to grow by 5.4% for the current fiscal year and 5% for 2023-2024.
Egypt has a lot of growth potential given its demographics because the country has a large population whose incomes could rise significantly if the country continues its development over time. According to the World Bank, Egypt has a population of over 104 million people, with the average GDP per capita for Egyptians of $3,876.4 in 2021. Egypt’s population is also relatively young with around 60% of the population under 30. With a young population, Egypt will have a large workforce for a long time.
Suez Canal
Another advantage for Egypt is that the country operates and maintains the globally important Suez Canal through a state owned company, Suez Canal Authority. Given how many ships pass through the canal to save time in transit, the Suez Canal Authority realized $7 billion in sales for fiscal year 2021/2022 versus $5.8 billion for fiscal year 2020/2021. In addition, the number of ships that passed through the Suez Canal rose to 22,032 for fiscal year 2021/2022, up 15.7%.
By owning and operating the important canal, Egypt realizes benefits both in terms of extra revenue, as well as in terms of having opportunities to potentially develop areas around the canal to economically develop faster. The Suez Canal is also strategically important as approximately 12% of all global trade worth more than $1 trillion goes through the canal each year. The canal enables the transfer of 7-10% of the world’s oil as well as 8% of the world’s LNG.
Given increasing global trade, Egypt is expanding the parts of the canal to improve ship navigation in some difficult parts of the canal.
Inflation
Egypt’s economy, which has a GDP in current U.S. dollars of $404.14 billion in 2021, has also had to deal with inflation headwinds. While Egypt’s annual urban consumer price inflation was 10.5% in March, annual urban consumer inflation in Egypt was 13.6% in July. In September, inflation in the country was 15%. Given the higher inflation in Egypt, it can be harder for the economy to grow as fast as it potentially could if inflation were lower.
Like Egypt, the United States has also experienced substantial inflation. In September, U.S inflation was 8.2%, with expenses rising in housing food and medical care.
Given the inflation, the Federal Reserve has raised rates and could potentially raise them higher. A summary of a recent Federal Reserve meeting said, “Participants judged that the Committee needed to move to, and then maintain, a more restrictive policy stance in order to meet the Committee’s legislative mandate to promote maximum employment and price stability.”
Because the Federal Reserve has increased rates, Treasury yields have increased. Because Treasury yields have increased, capital has flowed from other nations back into the United States. This capital flow has strengthened the U.S. dollar and caused the currency of many other nations to weaken versus the U.S. dollar.
In terms of Egypt’s currency, the Egyptian pound has weakened from 15.7 Egyptian pounds to the U.S. dollar in March of 2022 to around 19.61 Egyptian pounds to the U.S. dollar in October 2022. Some predict that the Egyptian pound could weaken even further by the end of next year.
With a weaker Egyptian pound, Egyptian companies that make most of their profits in Egypt are worth not as much in terms of the U.S. dollar.
Methodology
For our list of 15 Biggest Egyptian Companies, we took the 15 largest weights of the Egyptian Exchange EGX 30 Price Index and ranked them from #15 to #1.
According to Bloomberg, Egyptian Exchange EGX 30 Price Index is ‘a free-float capitalization weighted index of the 30 most highly capitalized and liquid stocks traded on the Egyptian Exchange’.
Constituents in the Egyptian Exchange EGX 30 Price Index are reviewed and potentially changed at the end of January and also the end of July every year. In terms of Egypt’s largest companies, many are financial institutions given how important financial institutions are for growing an economy.
The index weight is the weight of a company to the Egyptian Exchange EGX 30 Price Index.
15 Biggest Egyptian Companies
15. Credit Agricole Egypt
Index Weight: 1.74%
Credit Agricole Egypt is a leading Egypt based bank that provides corporate banking, retail and investment services. Although the bank’s profits increased steadily from 2014 to 2019 along with the growth of Egypt’s economy, the pandemic and now the inflation and interest rate headwinds have weighed on Credit Agricole Egypt’s profits in recent years. In terms of performance, Credit Agricole Egypt’s stock is down about 3.6% in the last year.
Photo by Ferran Fusalba Roselló on Unsplash
14. Housing & Development Bank
Index Weight: 1.75%
Housing & Development Bank is a leading Egyptian commercial and investment bank that primarily operates in the housing and development sector. With the exception of 2020, the Housing & Development Bank has steadily increased its revenue from 2014 to 2021. Housing & Development Bank’s profits, however, have leveled off since 2018. Shares of the bank are up 1.9% in the last year. In terms of its weight, Housing & Development Bank accounts for 1.75% of the Egyptian Exchange EGX 30 Price Index, which ranks it #14 on our list of 15 Biggest Egyptian Companies.
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13. Cairo For Investment And Real Estate Development
Index Weight: 1.86%
Cairo For Investment And Real Estate Development is an Egypt based company that engages in the investment of diversified sectors such as education, construction, real estate, health care, and more. Cairo For Investment And Real Estate Development also owns 7 schools directly and 11 schools indirectly. As of 10/20, shares of Cairo For Investment And Real Estate Development are down 0.83% in the last year.
Photo by Owen Lystrup on Unsplash
12. Egyptian Kuwaiti Holding-EGP
Index Weight: 2.54%
Egyptian Kuwaiti Holding-EGP is a private equity firm that seeks to invest in companies in various fields such as gas and power, petrochemicals, infrastructure, insurance, and more. Egyptian Kuwaiti Holding-EGP also invests in countries across Africa and the Middle East. As of 10/20, Egyptian Kuwaiti Holding-EGP shares have increased 11.3% in the last year.
JNP/Shutterstock.com
11. ELSWEDY ELECTRIC
Index Weight: 2.94%
ELSWEDY ELECTRIC is an Egyptian company that manufactures integrated cables and electric products. ELSWEDY ELECTRIC has about 15,000 employees, and 30 production facilities located in 14 countries. ELSWEDY ELECTRIC has an index weight of 2.94%, which ranks it #11 on our list of 15 Biggest Egyptian Companies.
Photo by Matthew Henry on Unsplash
10. Telecom Egypt
Index Weight: 3.51%
Telecom Egypt provides fixed line and retail telecommunication services as well as wholesale telecommunication services. Despite the Egyptian Exchange EGX 30 Price Index declining over 9% in the last year, shares of Telecom Egypt have increased over 37% in the last year. In terms of its weight, Telecom Egypt makes up 3.51% of the Egyptian Exchange EGX 30 Price Index.
EvgeniiAnd/Shutterstock.com
9. T M G Holding
Index Weight: 3.7%
T M G Holding is an Egypt based real estate company that establishes and develops hotels as well as touristic and residential projects in Egypt. As of 10/20, T M G Holding had a dividend yield of around 2.36%. Although high inflation and rapid interest rate rises are typically headwinds for housing, T M G Holding is up 1.22% in the last year.
Image by Автандил Цецхладзе from Pixabay
8. Misr Fretilizers Production Company – Mopco
Index Weight: 4.07%
Misr Fretilizers Production Company – Mopco engages in the production, marketing and distribution of fertilizers and also petrochemical products. Misr Fretilizers Production Company – Mopco produces important products such as ammonia and nitrogen needed to increase crop yields to feed Egypt’s population. Although its results can be volatile from year to year, Misr Fretilizers Production Company – Mopco had a record year in 2021 in terms of profits and in terms of revenue.
Singkham/Shutterstock.com
7. Fawry For Banking Technology And Electronic Payment
Index Weight: 4.82%
Fawry For Banking Technology And Electronic Payment is a leading electronic payment network in Egypt. In addition to providing payment gateways, Fawry For Banking Technology And Electronic Payment offers micro finance and insurance services. Given tech sector headwinds, Fawry For Banking Technology And Electronic Payment shares have fallen 61.8% in the last year. In terms of weight, the company makes up 4.82% of the Egyptian Exchange EGX 30 Price Index, which ranks it #7 on our list of 15 Biggest Egyptian Companies.
Pressmaster/Shutterstock.com
6. Egyptian Financial Group-Hermes Holding Company
Index Weight: 4.86%
Egyptian Financial Group-Hermes Holding Company is a leading investment bank based in Egypt that also operates in countries such as UAE, Saudi Arabia, Kuwait and more. The bank provides services such as asset management, investment banking, private equity, micro finance and more. Given its financial results, Egyptian Financial Group-Hermes Holding Company shares are up 18.54% in the last year. Egyptian Financial Group-Hermes Holding Company ranks #6 on our list of 15 Biggest Egyptian Companies given its index weight of 4.86%.
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Disclosure: None. 15 Biggest Egyptian Companies is originally published on Insider Monkey.
