DUBAI: Egypt’s EFG Hermes is working on a $500 million merger and acquisition in Saudi Arabia and expects more deals to come out of the kingdom this year, especially from the private sector, its head of investment banking told Reuters.
Saudi Arabia has made attracting greater foreign investment a key part of its economic Vision 2030 plan as it tries to diversify the economy away from its reliance on oil.
The kingdom’s impending inclusion in the FTSE Russell emerging markets index this month is expected to draw billions of dollars of foreign fund flows.
“Saudi I think will be very busy,” Mohammed Fahmi said, on the sidelines of the bank’s investment conference in Dubai which is taking place this week.
“I’m seeing a lot of RFPs (request for proposals) coming from Saudi for IPOs... Private sector companies looking to go public, which I think is a valuable thing.”
The bank is also advising on an initial public offering (IPO) in Saudi Arabia, Fahmi said, but would not give any more details.
EFG Hermes is one of the banks advising on the potential $1 billion listing of Fawaz Alhokair Group’s Arabian Centers Company expected in the second quarter, Reuters has reported, although EFG has declined to comment on its role.
Another executive at EFG Hermes told Reuters in December that the investment bank was working on a major M&A deal in the health sector in Saudi Arabia.
In addition, Fahmi said there were deals underway in the automotive, banking, and facilities management sectors in the kingdom and in the United Arab Emirates.
In Egypt, EFG Hermes is working on a potential fourth quarter $300 million IPO, Fahmi said.
Another IPO for state-owned Alexandria Container and Cargo Handling may occur as soon as the second quarter of this year, Mohamed Ebeid, co-CEO of EFG Hermes Investment Bank told Reuters. EFG Hermes is managing the sale along with Citigroup.
Egypt this week revived its privatization program, which has lain dormant for more than a decade, with the sale of a 4.5 percent stake in tobacco monopoly Eastern Company, which EFG adivsed on.
EFG Hermes is also working on a number of IPOs with private companies in Egypt, Ebeid said, mostly on the industrial side.
EFG Hermes advising on $500m M&A deal in Saudi Arabia
EFG Hermes advising on $500m M&A deal in Saudi Arabia
- Saudi Arabia has made attracting greater foreign investment a key part of its economic Vision 2030 plan as it tries to diversify the economy away from its reliance on oil
- EFG Hermes is one of the banks advising on the potential $1 billion listing of Fawaz Alhokair Group’s Arabian Centers Company expected in the second quarter
Saudi stock market opens its doors to foreign investors
RIYADH: Foreigners will be able to invest directly in Saudi Arabia’s stock market from Feb. 1, the Kingdom’s Capital Market Authority has announced.
The CMA’s board has approved a regulatory change which will mean the capital market, across all its segments, will be accessible to investors from around the world for direct participation.
According to a statement, the approved amendments aim to expand and diversify the base of those permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.
International investors' ownership in the capital market exceeded SR590 billion ($157.32 billion) by the end of the third quarter of 2025, while international investments in the main market reached approximately SR519 billion during the same period — an annual rise of 4 percent.
“The approved amendments eliminated the concept of the Qualified Foreign Investor in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements,” said the CMA, adding: “It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market.”
In July, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors. These included natural foreign investors residing in one of the Gulf Cooperation Council countries, as well as those who had previously resided in the Kingdom or in any GCC country.
This step represented an interim phase leading up to the decision announced today, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.
Saudi Arabia, which is more than halfway through an economic plan to reduce its dependence on oil, has been trying to attract foreign investors, including by establishing exchange-traded funds with Asian partners in Japan and Hong Kong.
