Arqaam Capital is pleased to invite you to its Egypt Investor Conference held at the Vineyard Hotel in Cape Town on the 22nd & 23rd of January 2018 where we will host senior management from c.20 listed Egyptian companies. This is an excellent opportunity for investors to meet with C-level management in both 1x1 and small group meetings.

A year has now passed since the Egyptian government decided to float its exchange rate, easing foreign investor repatriation concerns and unlocking tremendous value in the Egyptian stock market. However this came at a cost, with inflation spiking to highs of 30% this past July and interest rates rose sharply. Even though the index jumped 65% in local currencies, many stocks are well below their dollar market caps pre-devaluation.

Higher interest rates allowed Egyptian banks to report record profits over the last year, aided by further de-dollarization, while debt costs for non-financials skyrocketed. However, one year on from the IMF deal and with the worst of the inflation cycle now behind us, we expect to see significant interest rate cuts to commence in H1 18e, which should crystallize new opportunities for various sectors.

The government privatization program is yet to commence but we expect a healthy IPO pipeline across sectors in 2018, which will increase the diversity of Egyptian investment universe while injecting significant liquidity into its market. This should help increase Egypt’s footprint across international indexes by adding more constituents, after MSCI had to enact index continuity rules to maintain the minimum three stocks.

We are excited to play the opportunities in Egypt, and we hope that you will join the Arqaam sales and research team and benefit from what is set to be a highly productive conference.

Radi El HelwHead of Egypt

Wafic NsouliHead Equities