investment approach
our strategy
EZDEHAR’S INVESTMENT STRATEGY
is based on:
- Looking deeper than others for the right opportunities
Executing the investments with diligence
- Working with management ‘with our sleeves rolled up’
OUR INVESTMENT PROCESS
Ezdehar Management seeks partnerships with promising companies that we can create and execute a long-term vision with. We look to build legacies, investing in family businesses and successful entrepreneurs to achieve operational excellence, strong performance, and realize their full potential.
Our investment process is characterized by looking wide (many opportunities) and deep (ensuring that we know everything that we need to know) for potential investments. We then execute selected opportunities according to world-class standards and with a focus on true partnership from the beginning.
OUR MARKET
01. WHY INVEST IN EGYPT ?
Egypt's strong and growing economy combined with favorable demographics make it an important and attractive market for global investors.
03. FAVORABLE DEMOGRAPHICS
Egypt's population is the 15th largest in the world and is expected to exceed 115 million by 2025. The majority of its people are under the age of 30, while an expanding middle-class segment is expected to further boost household income and consumer spending in the coming years, in addition to an increasing number of women in the workforce.
05. IMPACTFUL REFORM PROGRAM
In 2016, the Egyptian government embarked on a major IMF-supported economic reform program, which included exchange rate liberalization, fiscal consolidation and reduced spending as well as phasing out subsides on fuel and energy. This has resulted in improved macroeconomic stability and business climate.
07. STABLE POLITICAL OUTLOOK
Since 2014, Egypt has been on a positive trajectory with increasing political stability. Egypt’s government has proven to be highly committed to the reform agenda, while also prioritizing economic and social stability.
02. SUPPORTING MACRO FUNDAMENTALS
Egypt’s thriving economy has proven to be remarkably resilient. Despite an extended period of economic uncertainty, it is one of only seven economies which have not experienced Real GDP shrinkage in a single year since 1980. A 2018 Harvard report predicted that Egypt would be the world’s third fastest-growing economy in the next decade. The country's economy is also among the most highly diversified in the region.
04. Strong Multinational Presence
As one of the most promising and fastest expanding markets in its region, Egypt has emerged as a market of significant importance, evidenced by the presence of dozens of leading global brands.
06. Solid M&A and IPO Activity
Egypt's capital markets have continued to exceed expectations, consistently outperforming the MSCI Emerging Markets Index. The markets have benefited from a comparative improvement in the country's macroeconomic and political environment. The Egyptian Exchange posted 10 IPOs in 2017-2019, vs. only 7 IPOs in 2011-2016. With stabilizing macroeconomic conditions, Egypt is set for strong performance on the M&A front as well. Transaction deal value is expected to reach US$ 1.1 billion in 2021 vs. US$ 0.6 in 2017 and US$ 0.4 in 2016.
01. WHY INVEST IN EGYPT ?
Egypt's strong and growing economy combined with favorable demographics make it an important and attractive market for global investors.
02.SUPPORTING MACRO FUNDAMENTALS
Egypt’s thriving economy has proven to be remarkably resilient. Despite an extended period of economic uncertainty, it is one of only seven economies which have not experienced Real GDP shrinkage in a single year since 1980. A 2018 Harvard report predicted that Egypt would be the world’s third fastest-growing economy in the next decade. The country's economy is also among the most highly diversified in the region.
03. FAVORABLE DEMOGRAPHICS
Egypt's population is the 15th largest in the world and is expected to exceed 115 million by 2025. The majority of its people are under the age of 30, while an expanding middle-class segment is expected to further boost household income and consumer spending in the coming years, in addition to an increasing number of women in the workforce.
04.Strong Multinational Presence
As one of the most promising and fastest expanding markets in its region, Egypt has emerged as a market of significant importance, evidenced by the presence of dozens of leading global brands.
05. IMPACTFUL REFORM PROGRAM
In 2016, the Egyptian government embarked on a major IMF-supported economic reform program, which included exchange rate liberalization, fiscal consolidation and reduced spending as well as phasing out subsides on fuel and energy. This has resulted in improved macroeconomic stability and business climate.
06.Solid M&A and IPO Activity
Egypt's capital markets have continued to exceed expectations, consistently outperforming the MSCI Emerging Markets Index. The markets have benefited from a comparative improvement in the country's macroeconomic and political environment. The Egyptian Exchange posted 10 IPOs in 2017-2019, vs. only 7 IPOs in 2011-2016. With stabilizing macroeconomic conditions, Egypt is set for strong performance on the M&A front as well. Transaction deal value is expected to reach US$ 1.1 billion in 2021 vs. US$ 0.6 in 2017 and US$ 0.4 in 2016.
07. STABLE POLITICAL OUTLOOK
Since 2014, Egypt has been on a positive trajectory with increasing political stability. Egypt’s government has proven to be highly committed to the reform agenda, while also prioritizing economic and social stability.
OUR Responsible Investment Code
The Ezdehar Responsible Investment Code (ERIC) informs how Environmental and Sustainability (E&S) risks are integrated into the investment decision-making process and encompasses Ezdehar’s ESG pillars, its E&S Policy and E&S Management System (ESMS). It aligns with applicable international requirements and relevant national laws and regulations, lays out the E&S risk categorizations and includes reporting patterns.
We have built a network of best in class local and international ESG advisors to support our team portfolio companies in the integration of ESG criteria and international best practices in E&S risk identification and mitigation.
In addition to our ERIC, other governance tools include the External Grievance Mechanism Procedure, Employee Manual and Management Committee and Subcommittees Charter.