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Half of the United Arab Emirates travellers experience the Fear of Switching Off

By
Sahfy Sahfy
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Priority Pass finds that half of UAE travellers experience the Fear of Switching Off (FOSO)
Priority Pass finds that half of UAE travellers experience the Fear of Switching Off (FOSO)

Half (49%) of UAE residents experience FOSO: The Fear of Switching Off. That’s according to new global research from Priority Pass – the original and market-leading airport experiences programme, owned and operated by Collinson – who surveyed 8,500 people across 11 countries and found that one in three people globally (34%) find it difficult to truly switch off from everyday life while on their travels.

Travellers out of the UAE are among the least likely to disconnect from digital devices while on vacation, when compared globally. More than half (58%) admit to finding it hard to reduce the amount of time spent on their phone while away, which rises to 61% for just millennials. The same amount (57%) struggle to stop checking work-related enquiries, and just over a quarter (28%) of UAE travellers check their phone every 30 minutes or less – that is 10% more often than the global average.

With travel once again on a resurgent ascent, Priority Pass asked respondents what was causing FOSO and holding them back from experiencing the true benefits of travel. Globally, more than 6 in 10 (62%) travellers said that pre-flight issues often initiate FOSO but can be subsided by some airport services.

Half (53%) of global travellers feel that visiting an airport lounge has improved how they have been able to switch off during previous travels. This compares to 50% of UAE travellers, who also agree that shopping in duty free (51%) and experiencing food and beverage (41%) are also the most effective ways to switch off pre-flight.

The airport experience has fast become a leading barometer for how well people can relax or enjoy their trip. However, data also suggests the pre-flight experience can be a valuable place to tackle FOSO. According to 74% of UAE respondents, tackling FOSO ahead of travelling could significantly benefit their overall wellbeing. Of those that have already enjoyed the airport lounge experience, (70%) of all people believe that visiting one would have a beneficial impact on how they switch off for the remainder of their trip.

“We all know that being able to switch off and get away from the stress of every day is more important than ever. That is why so many are turning to travel. However, our research shows that FOSO is real. We want to ensure people can unwind and relax from the start of their journey and create memorable experiences” said Christopher Evans, CEO of Collinson International.

“We remain agile to changing travel trends to ensure we are always innovating our range of premium experiences and providing offerings which go beyond the airport lounge. From pre-booking airport transfers and lounge access to visiting sleeping pods, gaming lounges, and spa experiences, we are evolving our portfolio worldwide to ensure travellers can switch off at every point of the journey.”

“For some, ‘that holiday feeling’ associated with travelling begins long before arriving at the airport. However, our study tells us that this is not often the case. That is why we have done a deep dive to understand the differing behaviours and attitudes of travellers globally. We want to make every step of the travel journey seamless, stress-free, and enjoyable and continue to tailor our offering to help Priority Pass members combat FOSO when travelling,” added Priyanka Lakhani, Senior Vice President, Commercial, EMEA

Despite best efforts to relax and switch off during their travels, many travellers find themselves drawn back to their devices after a brief period. With more than a third (37%) of UAE travellers initially disconnecting, they soon feel compelled to check back in with home. As a result, Priority Pass asked respondents to build the perfect FOSO-free trip. Travellers in the UAE said that the best type of travel to switch off is a trip to the beach – followed by a city break, safari, or camping trip. The ideal time to go away is 1 week. Women say that shopping in duty free is their favourite pre-flight airport experience but for men, it is visiting a lounge.

ZorroSign Announces Growth Partnership With Vision Tech Solutions In The Gulf

By
Sahfy Sahfy
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ZorroSign, a global leader in data security solutions built on multi-chain blockchain, is entering into a strategic partnership with Vision Tech Solutions to bring its data security platform and blockchain technologies to the Gulf region via Vison Tech Solution’s IT infrastructure and services. ZorroSign’s platform is a comprehensive digital signature and digital transaction management solution that includes robust document management capabilities, advanced forms filling functionality, and state-of-the-art document security features.

“We are thrilled to partner with Rajab and his team at Vision Tech,” said Shamsh Hadi, CEO and co-founder of ZorroSign. “Their customer service focus and top-quality IT services map well to ZorroSign’s values and data security strengths, and we are eager to see what our combined technology solutions can achieve for companies in the UAE and later into the larger Middle East and North Africa region and Europe.”

(Left- Vision Tech Solutions CEO, Rajab Ali Virani, and Right – ZorroSign CEO, Shamsh Hadi, sign partnership agreement)

ZorroSign was founded to advance technology and sustainability towards helping customers adopt sustainable practices and securely transform paper-based workflows into digital workflows. This conscientious approach to operations helps decrease costs, lower resource consumption, reduce data errors, and increase productivity. Businesses, educational institutions, financial organisations, governments, IT firms, legal service providers, real estate companies, and others use ZorroSign to privately and securely manage their digital transactions.

“Vision Tech aspires to be a global leader in Information Technology, driving technological advancements and delivering sustainable solutions that improve the lives of people around the world,” added Vision Tech Solutions CEO Rajab Virani. “ZorroSign is an ideal technology partner for us that brings a practical, scalable blockchain solution to data security and digital signatures with an overarching commitment to sustainability.”

Safeguarding the security and privacy of customers’ data is ZorroSign’s topmost priority. The company is committed to ensuring that its advanced data protection measures are always at the forefront of its operations so customers can have complete confidence and trust in its services.

ZorroSign today has an extensive customer base for its data security and digital signature solutions built on blockchain in the GCC, India, Sri Lanka, the United States, and Canada. The technology company is aggressively expanding into European markets and seeking new strategic alliances across the EU and UK in 2023.

8th World Investment Forum in Abu Dhabi to focus on women empowerment

By
Sahfy Sahfy
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8th World Investment Forum
8th World Investment Forum
  • Enhancing women participation in different sectors to achieve Sustainable Development Goals
  • WIF’s discussions to explore role of investment in empowering women

 The UNCTAD’s World Investment Forum, one of the world’s largest investment gatherings hosted by Abu Dhabi from 16 to 20 October 2023, is shining a spotlight on the imperative need for innovative investment strategies and policies to facilitate the flow of capital towards environmentally and socially sustainable development projects, with a special focus on women empowerment.

To be held under the theme “Investing in Sustainable Development,” the eighth edition of WIF will dedicate its second and third days to an in-depth exploration of the pivotal role that investment plays in achieving Gender Equality, the fifth Sustainable Development Goal (SDG) set the by the United Nations. Gender equality is not only a fundamental human right but also a catalyst for economic growth and sustainable development. Empowering women and affording them equal opportunities in education, employment, and political participation are essential steps toward achieving SDGs and making significant strides in various fields.

The 8th edition of WIF, to be held at the Abu Dhabi National Exhibition Centre (ADNEC), will feature a dynamic agenda that includes dialogues, keynote addresses, interactive workshops, and side events to discuss the challenges of global investment and development. It aims to facilitate communication among leaders from around the world, stimulate cooperation and collaboration between the public and private sectors, and direct international trade and investments towards sustainable sectors.

Mrs. Mouza Obaid Al Nasri, Executive Director of SME sector at the Abu Dhabi Department of Economic Development (ADDED), said “Our firm belief and unwavering commitment to women empowerment could be illustrated by various initiatives launched to increase participation of women in different economic sectors and benefit from ample opportunities provided by Abu Dhabi’s advanced business ecosystem and ambitious development plans. We are working closely with federal and local entities to continuously

enhance the business environment to achieve women empowerment and other sustainable development goals”.

Mrs. Mouza Al Nasri highlighted importance of initiatives launched by the UAE in this regard including the “Gender Balance Council Strategy 2026”, which includes a range of measures and programmes that support investments in projects promoting gender equality, with a focus on women’s education and training as well as support for women in business.

“We have witnessed a rising number of economic licences owned by women entrepreneurs in recent years and will continue our efforts to raise awareness and develop policies and frameworks to encourage their active participation in various sectors. As we look forward to welcoming leaders, investors, and key decision makers at the UNCTAD’s World Investment Forum, we believe the outcomes of its discussions will guide future steps to further enhance women empowerment,” Mrs. Mouza Al Nasri added.

A panel discussion titled “Investment Promotion and its Impact on Gender Equality” is organised in collaboration with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the most comprehensive international governmental platform in the Asia-Pacific region. This side event highlights the most significant initiatives of investment promotion agencies and their contribution to achieving gender equality in the context of investment promotion and facilitation.

Investment promotion agencies are increasingly working to integrate gender equality and empower women across their operations. They facilitate the significant impact of foreign corporate activities on gender equality in the host country’s economy. This includes enhancing comprehensive gender links between multinational and local companies. Additionally, these agencies focus on empowering women and promoting gender equality within their workforce.

Integrating gender equality considerations into investment promotion and facilitation efforts can attract multinational companies that have a positive impact on women, particularly in providing sustainable employment opportunities for them. Investment promotion agencies can collaborate with government agencies to address the challenges faced by women entrepreneurs and support them in building their business networks.

Meanwhile, the session on “Gender Equality in Corporate Leadership,” organised in partnership with the International Finance Corporation and the United Nations Entity for Gender Equality and the Empowerment of Women, provides market leaders with an opportunity to discuss the challenges and opportunities for achieving gender equality. It examines the role of financial markets and other key stakeholders in promoting gender equality within their business scope. The session also explores the progress made in achieving gender balance in corporate boards and other leadership positions.

Gender equality is a top priority on the international sustainability agenda and one of the SDGs of the United Nations. Companies are working to enhance their practices and methodologies, develop public-private partnerships, and invest resources optimally to achieve gender equality.

More than 7,000 investment stakeholders from 160 countries will participate in the World Investment Forum. It brings together leaders, government officials, decision-makers, business professionals, top executives of global companies, stock exchanges, sovereign wealth fund managers, investment treaty negotiators, heads of investment promotion agencies, international investment site experts, heads of international organisations, parliamentarians, along with representatives from civil society, leading academics, and international media.

Middle East hospitality investment outlook reveals USD1.9 trillion worth of hotel and residential projects under development

By
Sahfy Sahfy
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KSA, UAE and Egypt at the forefront of investment, according to new data released ahead of the Future Hospitality Summit
KSA, UAE and Egypt at the forefront of investment, according to new data released ahead of the Future Hospitality Summit

KSA, UAE and Egypt at the forefront of investment, according to new data released ahead of the Future Hospitality Summit

Hospitality and residential projects worth US$D1.9 trillion are under development in the Middle East, with Saudi Arabia, United Arab Emirates and Egypt accounting for 90 per cent (US$1.7 trillion) of investment, according to key data released ahead of the Future Hospitality Summit, taking place in Abu Dhabi, 25-27 September 2023.

Research by global independent real estate consultants Knight Frank reveals that KSA is top of the region’s project investment table, with US$1.2 trillion worth of developments in the pipeline, followed by the UAE (US$300 billion) and Egypt (US$200 billion), highlighting the Middle East’s continued commitment to reaching 160 million annual tourists by 2030.

Turab Saleem, Partner and Head of Hospitality, Tourism and Leisure – MENA at Knight Frank, said: “The Middle East was the first region globally to make a complete business recovery after the pandemic. While much of the world still faces challenges in its return to normality, this region is set to surpass pre-Covid levels in terms of hospitality and tourism related revenue and employment. The Middle East’s travel and tourism sector witnessed a tremendous growth with a 46.9% increase in its contribution to GDP in 2023, which is the highest of any region in the world. This growth is being driven by a 14.5% increase in the number of jobs supported by the sector, and a more than $107 billion USD increase in its overall contribution to the GDP. Moreover, the sector has also created 0.9 million new jobs.

“The influx of new hospitality and tourism-related projects in the region is also fostering new trends that add value and efficiency and yield better investment returns” added Saleem. “Simplified visa processes, aggressive marketing campaigns, green initiatives, innovation and technology, increased connectivity with new players in the airline sector, personalised guest interaction and a booming holistic health and wellbeing industry are all playing a key role in the growing success of the Middle East’s tourism industry.”

Commenting on the growth of the hospitality sector in the Middle East, Hala Matar Choufany, President, Middle East, Africa and South Asia HVS Middle East, said: “We have experienced exponential growth over the last 15 years supported by a massive increase in hotel supply across different categories. The number of quality hotel rooms in the region grew fivefold from circa 100,000 in 2010 to 540,000 in 2022, with occupied room nights growing from 27 million to 135 million. An additional 180,000 keys are expected to enter the region over the next five years, which is forecast to increase occupied room nights to 184 million by 2028. Significant government budgets have played a key role in encouraging private investments and attracting foreign direct investment in the region. Today, the Middle East is expected to achieve higher growth compared to other regions, presenting attractive financial returns and providing long-term investment opportunities.”

A significant volume of hospitality related transactions is currently at an advanced stage of negotiation, with high profile properties expected to change hands in the coming months, according to global real estate consultancy Colliers.

James Wrenn, Executive Director and Head of Capital Markets, MENA at Colliers, said: “There’s a strong appetite for the hospitality asset class – particularly in Dubai and Ras Al Khaimah – from regional and international investors, buoyed by strong operating performance last year and the continued enhancement of the UAE as a top-tier international tourism destination.”

According to Wrenn, global sentiment remains subdued as the effects of high inflation, rising interest rates and looming fears of recession has affected the confidence of investors and reduced activity levels. “Buyers are now scrutinising transactions more closely and there remains a gap between buyer and seller expectations. Across many markets it is generally accepted that yields will need to soften further to enable pricing to stabilise in-line with interest rates.”

Hospitality investment and the seemingly endless opportunities in the region’s tourism sector will be under the spotlight at FHS in Abu Dhabi, 25-27 September, with more than 100 top level speakers addressing key factors shaping the future of the industry, all under the theme “Focus on Investment.”

FHS is organised by The Bench and supported by host sponsors Abu Dhabi Convention & Exhibition Bureau, Miral, and Hilton Abu Dhabi Yas Island.

For more information, visit the FHS website and click here for the full programme.

 

Pipeline development values and hotel rooms, according to Knight Frank:

Construction values
Country Construction value (US$) 
1 KSA 1.2 trillion
2 UAE  301.7 billion
3 Qatar   42.4 billion
4 Oman   62.9 billion
5 Kuwait  87.2 billion
6 Egypt 200.9 billion

 

About The Bench

The Bench has established a legacy for delivering world-leading investment forums and conferences in Europe, Africa, the Middle East, and Latin America. The key principle behind these platforms has remained ‘dealmaking’. Transforming the way business connect, Bench has developed a reputation for creating innovative and high-impact meeting spaces for the industry.

For over two decades – government leaders, tourism ministries, global travel & tourism associations, the world’s most influential hospitality brands, hotel owners & investors, renowned restaurant groups, airlines & aviation authorities, destination developers, asset managers, financial groups and consultants – have been participating in The Bench’s events for their respective objectives. These include AHIC, AHIF, GRIF, FHS, AHF, IDEEA, AviaDev and RENEW –where industry players showcase their brands, position themselves as thought leaders or innovators, and connect with the right opportunities and knowledge.

Learn more on thebench.com

 

FHS 2023

Dates:                           25-27 September 2023

Location:                       Hilton Abu Dhabi Yas Island

Sponsors:                     Abu Dhabi Convention & Exhibition Bureau, Miral and Hilton Abu Dhabi Yas Island as Host Sponsors; Accor, Boutique Group, Hilton, IMKAN, The Ministry of Tourism Saudi Arabia, NEOM, Radisson Hotel Group, Spectrum & Next Group and Rua Al Madinah as Platinum Sponsors; IHG Hotels & Resorts, Marriott International, Millennium Hotels & Resorts, Rotana, SMIT Morocco and Taiba Investments as Emerald Sponsors; Aleph Hospitality, AMSA Hospitality, BECC, CBRE, Colliers, Compass Project Consulting, Domus, ELAF, Emaar Hospitality, HVS, IHCL, Insignia, IT Hospitality Group, JLL, Knight Frank, Leva Hotels, Louvre Hotels Group, Mapal, Minor Hotels, ModDsys, OBMI, PWC, QUO, Restoworks, Rikas Hospitality Group, Rove Hotels, SSH, Valor Hospitality Partners, Voltere, Whitewater, Wyndham Hotels & Resorts and Zimbabwe Tourism Authority as Gold Sponsors; Aldar, Atmosphere, Deutsche Hospitality and Hospitality Management Holding as Silver Sponsors, and Forsite Creative, Frischs, Table and Beyond, and Winnow as GRIF Exhibitors.

Alpha Dhabi’s Majority Stake Acquisition in Metito Holdings Reaffirms Ongoing Commitment to Addressing Global Water Scarcity

By
Sahfy Sahfy
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Alpha Dhabi's Majority Stake Acquisition in Metito Holdings Reaffirms Ongoing Commitment to Addressing Global Water Scarcity
Alpha Dhabi's Majority Stake Acquisition in Metito Holdings Reaffirms Ongoing Commitment to Addressing Global Water Scarcity

·         The strategic move supports the objectives of the UAE’s Year of Sustainability and the upcoming COP28, marking Alpha Dhabi’s inaugural foray into the water and wastewater sector.

·         The acquisition is a cornerstone of Alpha Dhabi Climate Capital, focusing on climate- conscious investments.

 Alpha Dhabi Holding (ADX: ALPHADHABI), one of the fastest- growing investment holding companies in the United Arab Emirates (UAE), has announced its acquisition of a majority stake in Metito Holdings Ltd., a global leader in the water and wastewater industry. Pending regulatory approvals, this pivotal transaction marks Alpha Dhabi’s strategic entry into the water and wastewater domain. The acquisition not only underscores the company’s commitment to diversifying its portfolio but also bolsters Metito’s mission to broaden smart water solutions across the MENA region and beyond, aligning with the UN sustainability goals.

 

The acquisition sees Alpha Dhabi purchasing the majority stake from selling shareholders Mitsubishi Corporation, Mitsubishi Heavy Industries, and Gulf Capital, showcasing Alpha Dhabi’s unwavering confidence in Metito’s expertise and future potential. The Ghandour family, Metito’s founding shareholders, will retain their leadership roles, ensuring the company’s foundational principles of impact, sustainability, and innovation remain intact.

 

Eng. Hamad Salem Al Ameri, Chief Executive Officer and Managing Director of Alpha Dhabi, commented: “With nearly half the world’s population projected to face water scarcity by 2025, the need for sustainable water solutions has never been more critical. Our partnership with Metito is a decisive step towards addressing this pressing challenge. Together, we are committed to pioneering solutions that not only cater to immediate needs but also ensure a sustainable future for generations to come. This collaboration is more than a strategic business move; it’s a testament to Alpha Dhabi’s dedication to driving impactful change in the water sector and our broader vision of sustainable growth and global impact.

 

Talal Ghandour, co-CEO of Metito, remarked: “Alpha Dhabi’s investment in Metito underscores the importance of our mission and the value we bring to the table. Together, we aim to address the pressing water challenges, especially in the MENA region, which is the most water-stressed region globally. With

 

 

Metito’s extensive experience across 50 countries and our dedication to innovation and technology, this partnership will bolster our capabilities, allowing us to further our mission and bring sustainable water solutions to regions that need it the most.”

 

Rami Ghandour, co-CEO of Metito, added: “This partnership is set to unlock vast synergies and to unleash boundless potential. We are poised to make significant contributions to sustainable solutions, especially as the UAE’s Year of Sustainability and COP28 gain traction. Together, our combined expertise and resources position us to drive sustainable growth and shareholder value in the global water sector.”

 

By 2025, an estimated 3.5 billion people could be living in water-scarce regions. The MENA region, home to 7% of the world’s population but just 1% of its freshwater resources, is the most water-stressed globally. A staggering 83% of its population, approximately 500 million people across 25 countries, are using over 80% of their renewable water supply. The World Bank projects that by 2050, water scarcity could cost the MENA region between 6% and 14% of its GDP. These alarming statistics underscore the urgent need for innovative solutions and impact investments in the water sector.

 In line with the upcoming COP28 in the UAE, Alpha Dhabi has also established Alpha Dhabi Climate Capital, focusing on climate-conscious investments, with Metito as a cornerstone of this initiative.

 With the UAE’s Year of Sustainability and the imminent COP28, both Alpha Dhabi and Metito are geared             to make substantial contributions to discussions and initiatives centered on sustainable, technology- driven solutions. This partnership is a testament to their shared vision of a brighter, more sustainable future for the UAE and the global community at large.

US-based construction 3D printing tech company ‘AC3D’ launched in GCC, vows to make construction greener, cheaper and faster

By
Sahfy Sahfy
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US-based construction 3D printing tech company ‘AC3D’ launched in GCC
US-based construction 3D printing tech company ‘AC3D’ launched in GCC
  • Construction industry is the world’s number one waste producer, significantly contributing to global CO2 emissions. Cement production alone accounts for 10% of CO2 footprint
  • US-based AC3D uses sustainable 3D printing materials, notably the 100% cementless geopolymer for a nearly net-zero construction process
  • 3D construction printing market is expected to reach $2.5 billion in 2025, up from $500 million in 2023
  • A single 3D printer can build over 50 houses a year. According to the World Bank, the global housing shortage will likely impact 1.6 billion by 2025
  • Deficit of 12 million homes annually is in place paired with a shortfall of 10 million construction workers

3D construction printing company AC3D today launched its operations in the UAE.

Focusing on low-rise housing, commercial real estate and infrastructure, AC3D is setting the stage for a greener era of construction, pledging to make it up to 1.5 times more cost-effective, and far less labour-intensive. The company aims to accelerate the construction processes, achieving up to four times increase in speed while using sustainable printing materials.

 

The 3D construction printing market is expected to reach $2.5 billion in 2025, up from $500 million in 2023.

 

Reflecting on the launch, Boris Kozlov, Founder & CEO of AC3D, said: “In addition to reducing CO2 emissions and minimizing waste, our vertically integrated technology paves the way for energy-efficient homes, enabling the creation of free-form architectural designs, reducing the amount of construction waste, and ensuring resistance to natural disasters.”

Assembled in the UAE, the next-generation 3D printers offer various environmental benefits in line with global sustainability efforts such as the UN Sustainable Development Goals. The construction industry is currently the world’s number one waste producer, and also one of the key contributors to the global carbon footprint. Cement production alone accounts for 10% of CO2 emissions.

 

In addition to sustainability, the economic and humanitarian implications of 3D construction printing are substantial. A single 3D printer has the potential to build more than 50 houses per year—a significant step towards addressing the global housing shortage projected to affect 1.6 billion people by 2025, as reported by the World Bank. Today, an annual deficit of 12 million homes is compounded by a significant shortfall of 10 million construction workers, underscoring the pressing challenges in the housing and construction sectors.

 

In addition to the manufacturing of these cutting-edge building robots, AC3D specializes in the development of proprietary 3D printing material mixes, the creation of advanced software solutions to streamline construction processes, as well as the engineering and 3D printing of entire buildings.

EFG Hermes Concludes Advisory on USD 290 Million IPO of Lumi Rental Company on the Saudi Exchange

By
Sahfy Sahfy
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EFG Hermes
EFG Hermes

EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its investment banking division successfully completed advisory on the USD 290 million initial public offering (IPO) of Lumi Rental Company, one of the leading car rental and leasing companies in the Kingdom of Saudi Arabia. EFG Hermes acted as joint bookrunner on the IPO.

Lumi Rental Company offered a total of 30% of its total issued share capital, equivalent to 16,500,000 shares, at SAR 66 per share, implying a market capitalization of SAR 3.63 billion. The IPO witnessed a robust demand of SAR 102.9 billion (USD 27.4 billion) for shares from local, regional, and international investors, with the total book covered approximately 94.5 times. Net proceeds of the offering will be received by the Selling Shareholder, Seera Group Holding (formerly known as Al Tayyar Travel Group). The company began trading today under the symbol 4262.

Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking, commented, “We are immensely proud of the role we played in Lumi Rental Company’s IPO — a transaction that reflects the growing confidence of investors in the Saudi market, which has emerged as a global investment powerhouse following rigorous efforts to deepen the market and showcase the Kingdom’s potential across various sectors. Our distinctive role in this transaction was instrumental in diversifying the local demand witnessed in the majority of Saudi IPOs, as we successfully secured quality regional and global investor participation by leveraging our unparalleled global distribution network and top-notch research capabilities that consistently raise the bar in the Saudi market. This IPO comes on the heels of the conclusion of our successful EFG Hermes Saudi Forum in London this month which was done in collaboration with the Saudi Exchange and included the Capital Markets Authority (CMA) as an honorary guest, reaffirming our commitment to being a trusted partner for companies seeking to unlock value and for investors looking to us as a gateway into this burgeoning market.

Lumi was established by Seera Group Holding in 2006 as a sole proprietorship to provide car rental services amongst a portfolio of travel companies. It is now one of the leading car rental companies in the Kingdom with a unique and diverse offering, including lease services to corporate and government sector clients, car rentals via digital channels and a network of 35 airport and city branches across the Kingdom, and used car sales. Since 2016, the company has achieved significant scaling; increasing from a fleet size of 3,603 vehicles to 24,730 vehicles as of 30 April 2023.

This listing marks the Firm’s fifth IPO this year and is the latest in a series of consecutive transactions EFG Hermes has advised on in the GCC over the years. In 2023, the Firm advised on the successful IPOs of ADNOC L&S and ADNOC Gas Plc on the Abu Dhabi Securities Exchange (ADX); Abraj Energy Services on the Muscat Stock Exchange (MSX); and Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).

The Spanish Cooperation and the National Coordinating Committee host a workshop for labor inspectors on illegal migration

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Sahfy Sahfy
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The Spanish Cooperation and the National Coordinating Committee host a workshop for labor inspectors on illegal migration
The Spanish Cooperation and the National Coordinating Committee host a workshop for labor inspectors on illegal migration

The Spanish Agency for International Development Cooperation (AECID), in partnership with the National Coordinating Committee for Combating and Preventing Illegal Migration and Trafficking in Persons (NCCPIM & TIP), and the Egyptian Ministry of Labor organized a three-day capacity-building workshop with support of the Spanish Ministry of Labor and Social
Economy.

Under the framework of the (CONMIGO) project funded by the European Union and implemented by Spain, the workshop offered Egyptian labor inspectors the knowledge needed to perform effective inspections and combat undeclared and exploitative labor.

The opening session was moderated by Ambassador Naela Gabr, chairperson of the NCCPIM & TIP, who emphasized the urgency and sensitivity of migration related crimes.

During the training sessions, a panel of both Spanish and Egyptian experts furnished participants with relevant legal knowledge and institutional strategies, including methods for fairrecruitment.

At the closing ceremony, the Spanish Ambassador to Egypt, Álvaro Iranzo, stressed the importance of this institutional collaboration, and the crucial work of labor inspectors on these matters.

The CONMIGO project is dedicated to improving migration governance in Egypt. The Spanish Cooperation is honored to be working closely with the NCCPIM & TIP to develop the capacities of all involved stakeholders in order to make migration a driving force of development. Project activities employ a multidimensional approach to migration governance in line with the objectives of the Global Compact for Safe, Orderly and Regular Migration.

 

EFG Hermes Advises on EGP 1.0 Billion Bond Issuance for EFG Corp-Solutions

By
Sahfy Sahfy
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EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today the successful conclusion of EFG Holding’s wholly-owned subsidiary, EFG Corp-Solutions’ third issuance of a securitization bond worth EGP 1.0 billion. This milestone marks a significant expansion of EFG Corp-Solutions’ securitization program, which has now increased its value from EGP 3.0 billion to EGP 6.0 billion. The bond is backed by a receivables portfolio assigned to EFG Securitization as the issuance’s special purpose vehicle (SPV).

The securitization bond is comprised of three tranches:

  • Tranche A – Valued at EGP 15.2 million, with a 12-month bond tenor and a Prime 1 (sf) rating
  • Tranche B – Valued at EGP 465.5 million, with a 36-month bond tenor and an A+ (sf) rating
  • Tranche C – Valued at EGP 531.3 million, with a 55-month bond tenor and an A+ (sf) rating

Commenting on the issuance, Moustafa Gad, Co-Head of Investment Banking at EFG Hermes said, “We are pleased to announce the successful conclusion of our third securitization bond issuance with EFG Corp-Solutions. The expansion of the securitization program to EGP 6.0 billion following the success of its first two transactions aims to further support the company’s growth by offering continued access to essential capital and financial solutions. This issuance not only provides EFG Corp-Solutions with substantial new funding, but also exemplifies our DCM team’s steadfast dedication to bolstering business growth in today’s challenging financial landscape. EFG Hermes remains dedicated to building upon our varied portfolio of world-class solutions in the DCM space, and this successful securitization bond issuance is a testament to our continued efforts to meet the evolving needs of our clients.”

CEO of EFG Corp-Solutions, Talal El Ayat, said, “This accomplishment represents a significant advance in boosting our operational expansion and establishing our position in the Egyptian market. The successful closing of the third issuance in our securitization program stands as a testament of our solid financial standing and fruitful business development plan. By utilizing a variety of funding sources, we can persist in achieving our goals of expanding our range of cutting-edge financial solutions, increasing our operational footprint, and diversifying our clientele. We are excited about the growth potential this expanded program offers and the opportunities it creates for both our organization and the broader financial ecosystem.”

This issuance comes on the heels of EFG Hermes’ successful closing of an EGP 922.3 million securitized bond offering for Valu, an EGP 472 million issuance for Egyptian Mortgage Refinance Company (EMRC) and an EGP 472.5 million securitized bond for Palm Hills Development (PHD). The investment banking division also concluded an EGP 805.5 million issuance for Madinet Masr (previously Madinet Nasr for Housing and Development), Al Taamir Mortgage Finance – Al Oula’s EGP 998.5 million issuance, Valu’s EGP 856.5 million issuance, as well as an EGP 986 million issuance for Misr Italia Properties.

EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger on the issuance. Arab African International Bank (AAIB) acted as underwriter as well as custodian bank on the issuance. Arab Banking Cooperation (ABC) and Al Ahli Bank of Kuwait were subscribers to the issuance. KPMG was the auditor and Dreny & Partners was the legal advisor.

Private Sector Developments make up for 85% of ongoing projects in Egypt

By
Sahfy Sahfy
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Private Sector Developments make up for 85% of ongoing projects in Egypt
Private Sector Developments make up for 85% of ongoing projects in Egypt

Property Finder has announced the findings of its latest Egypt Market Watch Report for Q2 2023, recording key transaction trends and insights for the country’s thriving real estate sector. The report indicates that a multitude of ongoing projects is driving the growth of the country’s property market, resulting in promising prospects.

Interestingly, The New Administrative Capital spanning 97 projects recorded great progress, having reached advanced stages of development. Out of these projects, approximately 67% have surpassed the halfway mark. Moreover, approximately 12% of the projects are nearing completion, with over 90% of the construction already finished. Another 22% of the projects are currently between 75% and less than 90% complete.

In Q2 2023, 25% of the total investments in Egypt were concentrated in the New Administrative Capital, with 97 ongoing projects with a total value of USD 68,528 million. Four new projects worth USD399 million were launched in Q2 2023.

Four projects worth USD399 million have been launched through Q2 2023 in the New Capital, with 60% decrease compared to Q1 2023, namely Ri8 Compound by ERG Developments worth 179 million, Talah compound by New Plan Developments worth 120 million, Oaks Egypt Hotel by Margin Development worth 70 million and Haven Business Tower by EGICS worth 30 million.

Nervein Magdy, Country Manager of Property Finder Egypt, said: “The second quarter for  Egypt’s real estate sector was marked by a boom in new projects that surpassed all expectations. The quarter also saw the successful delivery of multiple projects, leaving buyers and tenants alike spoiled for choice. In this dynamic landscape, we look forward to empowering homeseekers with trusted knowledge sources and tools for more informed decision making.”

The residential and mixed-use real estate sector recorded a growth in the number of ongoing projects that currently stands at 534, worth USD 329,575 million. In line with earlier trends, these accounted for around 50% of the total number of projects and approximately 75% of the total investments.

In Q2 2023, the market was dominated by private sector development that constituted 85% of ongoing projects and almost 66% of the total investments at USD 179,963 million.

Ongoing real estate projects in Egypt spanned across 21 governorates, and have reached advanced stages of development, with roughly 54% having surpassed the halfway mark and 13% nearing completion. Key investment destinations included Cairo, which attracted 57% of residential real estate investments, followed by the Giza Governorate with 16%.

Q2 2023 saw 32 developers commence construction on 34 projects across eight governorates with an estimated total cost of USD 7.7 billion, marking significant growth on the previous quarter and overshooting earlier projections.

Mountain View, a subsidiary of Dar Al Mimar Group (DMG), estimated their investment to be USD 1.3 billion, representing around 17% of the total investment in the last quarter. Meanwhile, JDAR Group had planned investments of around USD 500 million.

The majority – 41% – of the new projects are located in Cairo, while the Giza Governorate is home to 29%, concentrated in New Zayed City.

During Q2 2023, Egypt witnessed the delivery of 11 real estate projects with a combined value of USD 875 million. This represents a 19% increase in volume and a 46% hike in value compared to Q2 2022. Around 36% of these projects are located in Cairo, with 28% of the total investment distributed over four main areas – Mokattam, Mostakbal City, New Administrative Capital, and New Cairo. Golden Gates Compound by Ebad Elrahman For Real Estate was the most valuable project in Cairo, accounting for 49% of the total investment in the capital.

Giza Governorate recorded 27% of the delivered projects with a total value of USD 322 million. Marakez played a significant role in Q2 2023, completing USD 139 million worth of projects in Green Land Compound on 6th of October City. In the same city, El Batal Developments delivered Rock Eden Compound in the October Gardens area, valued at USD 100 million.

While property prices were still on the rise, the growth in the sales market was slower than in the previous quarter. The average asking price for apartments in Q2 2023 increased by 21.5% compared to the same period last year, and the average asking price for villas witnessed a 16% hike. Average rent price remained robust, with a 23.1% surge over Q2 2022.

The Property Finder Market Watch Report revealed that New Cairo City, 6th of October City, Nasr City, and Sheikh Zayed City remained among the top choices for those who wanted to own an apartment. A newcomer on the list was El Maadi. New Cairo City, 6th of October City, El Maadi, Madinaty, and Nasr City were the most popular options among apartment renters. Meanwhile, New Cairo City, 6th of October City, Sheikh Zayed City, Shorouk City, and Madinaty continued to attract the interest of villa buyers, either for investment or residential purposes. Villa renters mostly leaned towards 6th of October City, El Maadi, Madinaty, Sheikh Zayed City, and New Cairo City.

El Maadi, one of the most searched areas for one-bedroom apartments, saw the highest return on investment (ROI) of 9.75%. 6th of October City was the most profitable area for three-bedroom villas with an ROI of 6.89%.

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