Sawiris brothers investing in Egypt

Egyptian tycoons Nassef and Naguib Sawiris, sons of Orascom founder Onsi Sawiris, have both announced plans to make major investments in Egypt.

The Sawirises, Egypt’s wealthiest family, had a rough time under the Morsi regime. Nassef Sawiris and his father Onsi were put on a watch list in March 2013, over allegations that family firm Orascom Construction Industries had evaded US$2 billion worth of taxes in 2007. Facing arrest if they returned to Egypt, they stayed outside of the country. Although he was not subject to travel restrictions, Naguib Sawiris, an outspoken opponent of the Muslim Brotherhood, also left the country.

The family remained outside of Egypt until after a settlement was reached with Egyptian Tax Authorities in April. After Morsi was overthrown, Naguib Sawiris vowed that the family would increase its investments in the country. “My family and myself are going to be investing in Egypt like never before — any new projects where we can invest, any new factories that we can open, any new initiatives that will provide jobs for the young people of Egypt,” Naguib Sawiris told Reuters in a July 2013 interview.

On Wednesday afternoon, Nassef Sawiris announced the launch of Nile Holding Investments, a private equity fund that will make direct investments in Egypt. NHI will give backing to the Egypt Opportunities Fund, a $300 million equity firm launched earlier this week by UK-based Duet Group and Cairo-based CI Capital. Sawiris reportedly plans to contribute up to 25 percent of the new fund, provided it does not conflict with the interests of Orascom companies.

NHI will also be investing in Egypt’s healthcare sector, participating in a deal worth LE400 million, with details to be announced in the coming days.

This follows an announcement last week by Naguib Sawiris that his New Egypt Investment Fund, in a contortion with Cairo-based Beltone Financial, is seeking to buy 17.83 percent of investment bank EFG-Hermes.

Egyptian Financial Supervisory Authority, Egypt’s market regulator, put a hold on the deal until it can review the details. In the meantime, EFG-Hermes announced on Tuesday that it would be appointing an independent financial advisor “to opine on the fair value of the stock and the fairness of the offer, upon its approval by EFSA, in order to help shareholders evaluate its attractiveness.”

In an email statement sent Monday, Naguib Sawiris said he was unable to comment on the deal while it was still under evaluation by EFSA, saying only that “to me, this offer is a vote of confidence in the young management team of EFG Hermes.”

Sawiris also promised that more investments would be forthcoming. “After the completion of two major democratic milestones in Egypt, the new constitution and presidential elections, this is our first big investment into Egypt after having announced my intentions to invest heavily in the country.”