Gulf Capital investment fund is studying pumping $110m in new investments into the Egyptian
market within the coming two years, across the marine industries, logistics and infrastructure sectors.
Managing director of the firm and head of its private equity group, Walid Cherif, told Daily News Egypt that the company is negotiating with major shareholders of Amiral Holdings Limited to buy a stake worth $25-30m.
The fund’s strategy focuses on the purchase of non-controlling stakes of 10-50% of the companies it invests in. The investment period ranges between five and seven years.
On the sidelines of Cherif’s participation in the European Bank for Reconstruction and Development conference, he said that Gulf Capital has interests in a number of economic fields including infrastructure, manufacturing, health, and education.
He said that the economic reforms taken by the government in the past period, in terms of exchange rate liberalisation and investment laws, are positive for the foreign investor and will make the Egyptian market one of the strongest Arab markets in the next six years.
He pointed out that the fund has investments in a number of Arab countries, including Tunisia and the UAE, and is considering investing in a project in Jordan.
He said the fund contributes $15-30m in projects, then regains the funds within five to seven years through selling the stakes or offering them on stock markets.
He added that Gulf Capital’s provisions for the Arab region amount to $470m, of which 60% have been invested, leaving 40% to be invested over the coming two years.
He pointed out that the company, during the past period, contributed to a number of Egyptian companies, including Carbon Holdings Limited, in which the fund owns $57m, including $25m in 2015 and $32m last year, next to a $35m share in Advanced Energy Systems (ADES Group).