EFG Holding S.A.E. (Egyptian Financial Group Holding Company) is an Egyptian

financial services Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...

company present in the

Middle East The Middle East (term originally coined in English language) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq. The term came into widespread usage by the United Kingdom and western Eur ...

North Africa North Africa (sometimes Northern Africa) is a region encompassing the northern portion of the African continent. There is no singularly accepted scope for the region. However, it is sometimes defined as stretching from the Atlantic shores of t ...

Sub-Saharan Africa Sub-Saharan Africa is the area and regions of the continent of Africa that lie south of the Sahara. These include Central Africa, East Africa, Southern Africa, and West Africa. Geopolitically, in addition to the list of sovereign states and ...

, and

South Asia South Asia is the southern Subregion#Asia, subregion of Asia that is defined in both geographical and Ethnicity, ethnic-Culture, cultural terms. South Asia, with a population of 2.04 billion, contains a quarter (25%) of the world's populatio ...

regions and specializes in

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

brokerage A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neith ...

asset management Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process or manufacturing plants, infrastr ...

investment banking Investment banking is an advisory-based financial service for institutional investors, corporations, governments, and similar clients. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by und ...

private equity Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...

and research in addition to

finance lease A finance lease (also known as a capital lease or a sales lease) is a type of lease in which a finance company is typically the legal owner of the asset for the duration of the lease, while the lessee not only has operating control over the asset ...

, factoring,

microfinance Microfinance consists of financial services targeting individuals and small businesses (SMEs) who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; saving ...

Financial technology Financial technology (abbreviated as fintech) refers to the application of innovative technologies to products and services in the financial industry. This broad term encompasses a wide array of technological advancements in financial services, ...

mortgage A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...

, and

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...

. EFG Holding serves a range of clients including sovereign wealth funds, endowments, corporations,

financial institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

s, high-net-worth clients and individual customers. EFG Hermes is listed on the

Egyptian Exchange The Egyptian Exchange (EGX), Egypt's stock exchange, comprises two exchanges, Cairo and Alexandria, both governed by the same board of directors and sharing the same trading, clearing and settlement systems. Presently, the chairman of the Egyptia ...

(EGX) and

London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...

(LSE) stock exchanges. EFG Hermes has offices in

Egypt Egypt ( , ), officially the Arab Republic of Egypt, is a country spanning the Northeast Africa, northeast corner of Africa and Western Asia, southwest corner of Asia via the Sinai Peninsula. It is bordered by the Mediterranean Sea to northe ...

, the

United Arab Emirates The United Arab Emirates (UAE), or simply the Emirates, is a country in West Asia, in the Middle East, at the eastern end of the Arabian Peninsula. It is a Federal monarchy, federal elective monarchy made up of Emirates of the United Arab E ...

(UAE), the

Kingdom of Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in West Asia. Located in the centre of the Middle East, it covers the bulk of the Arabian Peninsula and has a land area of about , making it the List of Asian countries ...

(KSA),

Pakistan Pakistan, officially the Islamic Republic of Pakistan, is a country in South Asia. It is the List of countries and dependencies by population, fifth-most populous country, with a population of over 241.5 million, having the Islam by country# ...

Oman Oman, officially the Sultanate of Oman, is a country located on the southeastern coast of the Arabian Peninsula in West Asia and the Middle East. It shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen. Oman’s coastline ...

Kuwait Kuwait, officially the State of Kuwait, is a country in West Asia and the geopolitical region known as the Middle East. It is situated in the northern edge of the Arabian Peninsula at the head of the Persian Gulf, bordering Iraq to Iraq–Kuwait ...

Jordan Jordan, officially the Hashemite Kingdom of Jordan, is a country in the Southern Levant region of West Asia. Jordan is bordered by Syria to the north, Iraq to the east, Saudi Arabia to the south, and Israel and the occupied Palestinian ter ...

Kenya Kenya, officially the Republic of Kenya, is a country located in East Africa. With an estimated population of more than 52.4 million as of mid-2024, Kenya is the 27th-most-populous country in the world and the 7th most populous in Africa. ...

Nigeria Nigeria, officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf of Guinea in the Atlantic Ocean to the south. It covers an area of . With Demographics of Nigeria, ...

, UK,

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

and

Bangladesh Bangladesh, officially the People's Republic of Bangladesh, is a country in South Asia. It is the List of countries and dependencies by population, eighth-most populous country in the world and among the List of countries and dependencies by ...

with over 4,500 people from 25 nationalities. They serve clients from the

Europe Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...

and the

. Currently, EFG Holding is listed as number 13 in Forbes' Top 50 Listed Companies in Egypt 2023.

History

EFG, also known as the Egyptian Financial Group, became the first

firm in

when it was established by Dr Mohamed Taymour in 1984. Holding was founded in 1993 under the newly promulgated Capital Markets Law 95. EFG created and analyzed

privatization Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...

plans for the Egyptian government for several years. In 1993, The Egyptian Financial Group and Hermes independently made a move into securities brokerage. The two companies competed and both companies brought many investment strategies that were common to the west to

as several of the two firm's founders had Wall Street experience in corporate finance, sales & trading and asset management;, for example Hermes established the first

equity index In finance, a stock index, or stock market index, is an index that measures the performance of a stock market, or of a subset of a stock market. It helps investors compare current stock price levels with past prices to calculate market perform ...

in all of Egypt. In 1994, both Egyptian Financial Group and Holding entered into

. Fueled by

organic growth Organic business growth is related to the growth of natural systems and organisms, societies and economies, as a dynamic organizational process, that for business expansion is marked by increased output, customer base expansion, or new product devel ...

; the two firms also accounted for lead managing a majority of the privatization capital markets IPO's during 1995 and 1996. The two companies soon reached the point that further growth was not possible without a wider network of local and international clients on one hand, as well as the rising competitive threat of international investment banks in the progressively more active Egyptian market in terms of investment banking privatization transactions as well as higher trading volumes . These factors led to a merger in 1996 between EFG and Hermes.

Financial performance

For the year 2021, EFG Holding has posted profit after tax (PAT) of along with group’s top line surpassing the .

Structure

EFG Holding has five divisions and six subsidiaries under its finance platform

Securities Brokerage

EFG Holding Securities Brokerage is the leading brokerage house in the Arab world. With the region's largest brokerage team, the division caters to an extended spectrum of investors including foreign, local and Gulf institutions as well as individual, VIP, high-net-worth individuals and family offices. The division's products and services range from trading services including phone trading, online trading, SWAP/P-Note products trading and margin lending for Egyptian retail investors.

Asset Management

EFG Holding Asset Management serves a client base that includes sovereign wealth funds, endowments, foundations,

multinational corporation A multinational corporation (MNC; also called a multinational enterprise (MNE), transnational enterprise (TNE), transnational corporation (TNC), international corporation, or stateless corporation, is a corporate organization that owns and cont ...

s and family offices. The division employs professionals in portfolio management, trading, research, compliance and risk across its 3 locations in Egypt,

UAE The United Arab Emirates (UAE), or simply the Emirates, is a country in West Asia, in the Middle East, at the eastern end of the Arabian Peninsula. It is a federal elective monarchy made up of seven emirates, with Abu Dhabi serving as i ...

(Dubai) and

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in West Asia. Located in the centre of the Middle East, it covers the bulk of the Arabian Peninsula and has a land area of about , making it the List of Asian countries ...

Private Equity

EFG Holding Private Equity is a private equity house, with a presence in Cairo and Dubai. The division is focused on attractive investment opportunities that capitalise on different opportunities in and outside the MENA region. EFG Hermes Private Equity advised InfraMed, the largest investment vehicle dedicated to infrastructure investments in the Southern and Eastern Mediterranean. The firm was also one of five global and regional founding sponsors that together contributed EUR 385 million to establish InfraMed. In late 2014, EFG Holding launched Vortex - its renewable energy vehicle - to invest in solar and wind energy projects across Europe and Asia.

Investment Banking

EFG Hermes Investment Banking is an advisor for major M&A, debt and equity transactions. The division's investment professionals have advised on cross-border transactions in the region through a distribution network that encompasses more than 100 investors across North America, Europe, the Middle East and Africa. The Investment Banking team has completed some US$53.3 billion in M&A transactions since 1985 while raising more than US$19 million through initial public offerings, rights issues, secondary offerings and private placements in the same period.

Research

EFG Holding Research division offers its clients coverage of MENA markets, including more than 150 companies representing c. 60% of the region's aggregate market capitalisation. The team offers economics and strategy coverage of 11 key countries in the Arab world. Products include equity research, strategy and macro-strategy notes, sector overviews, economic notes, industrial research and country-specific economic and banking data reports.

Strategy

EFG Holding global strategy relies heavily on expanding in frontier emerging markets FEM. Therefore, the company has made its priority to enter into the major financial hubs of the Middle-East, namely

, the

Qatar Qatar, officially the State of Qatar, is a country in West Asia. It occupies the Geography of Qatar, Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it shares Qatar–Saudi Arabia border, its sole land b ...

and

Lebanon Lebanon, officially the Republic of Lebanon, is a country in the Levant region of West Asia. Situated at the crossroads of the Mediterranean Basin and the Arabian Peninsula, it is bordered by Syria to the north and east, Israel to the south ...

. Further expansions focused on key African financial hubs such as

as a hub for

East Africa East Africa, also known as Eastern Africa or the East of Africa, is a region at the eastern edge of the Africa, African continent, distinguished by its unique geographical, historical, and cultural landscape. Defined in varying scopes, the regi ...

and

as a hub for

West Africa West Africa, also known as Western Africa, is the westernmost region of Africa. The United Nations geoscheme for Africa#Western Africa, United Nations defines Western Africa as the 16 countries of Benin, Burkina Faso, Cape Verde, The Gambia, Gha ...

United Arab Emirates

EFG Hermes launched its brokerage activities in the UAE in early 2005, and by early 2007 had captured dominant market share on

Dubai Dubai (Help:IPA/English, /duːˈbaɪ/ Help:Pronunciation respelling key, ''doo-BYE''; Modern Standard Arabic, Modern Standard Arabic: ; Emirati Arabic, Emirati Arabic: , Romanization of Arabic, romanized: Help:IPA/English, /diˈbej/) is the Lis ...

Financial Market. The firm is also the top ranked broker on the Abu Dhabi Securities Market,

Dubai Financial Market The Dubai Financial Market (DFM) () is a stock exchange located in Dubai, United Arab Emirates. It was founded on 26 March 2000. Overview , there are 67 companies listed on DFM. Most of them are United Arab Emirates, UAE-based companies and a fe ...

and Nasdaq Dubai. In December 2005, EFG Holding was granted a license by the

Dubai International Financial Centre The Dubai International Financial Centre (DIFC) is a special economic zone in Dubai covering , established in 2004 as a financial hub for companies operating throughout the Middle East, Africa, and South Asia (MEASA) markets. DIFC is regulated ...

to conduct asset management and investment banking activities. EFG Hermes UAE is regulated in this capacity by the

Dubai Financial Services Authority The Dubai Financial Services Authority (DFSA) is the financial regulatory agency of the special economic zone, the Dubai International Financial Centre (DIFC), in Dubai, United Arab Emirates. It is distinct from the UAE's federal Securities and ...

, an independent regulatory authority that operates to the standards of major financial centers such as

and

New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...

. Out of

, the firm manages the region's top performing funds and has closed a number of landmark investment banking transactions. In February 2006, EFG Hermes UAE was also granted a license to conduct brokerage activities from within the Dubai International Financial Centre and became the first regional trading, clearing and custody member of the Dubai International Financial Exchange, its wholesale exchange.

Kingdom of Saudi Arabia

EFG Holding was granted a license from the

Capital Market Authority (Saudi Arabia) The Capital Market Authority (CMA; ) is the Saudi governments financial regulatory authority responsible for capital markets in Saudi Arabia. The CMA is a government organization applying full financial, legal, and administrative independence, ...

to launch its operations in the

in March 2007 offering securities brokerage, investment banking, asset management and research services in the largest investment market in the region. The brokerage arm reached the #1 position among the 12 independent brokerage companies, despite having started trading properly only in the third quarter of 2007.

Pakistan

EFG Hermes, inaugurated its office in Pakistan, making it the first foreign investment bank to directly enter the market since 2008 and the first foreign broker to have a local footprint in the country. The opening followed the firm's acquisition of Pakistani brokerage Invest and Finance Securities Ltd., which began operating as EFG Hermes Pakistan Limited.

Oman

In April 2008, EFG Hermes acquired 51% of Vision Securities in

at a

PE ratio Pe may refer to: Language, and letters * Pe language * Pe (Cyrillic), a letter (П) in the Cyrillic alphabet * Pe (Semitic), a letter (פ ,ف, etc.) in several Semitic alphabets ** Pe (Persian), a letter (پ) in the Arabic alphabet * Pe (Armeni ...

of 11.5 compared to EFG Hermes’ PE ratio of 16.6. EFG Hermes has long since accounted for substantial flows into the

Omani Oman, officially the Sultanate of Oman, is a country located on the southeastern coast of the Arabian Peninsula in West Asia and the Middle East. It shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen. Oman’s coastline ...

market on behalf of its foreign institutional clients, and is able to serve a broader base of clients from its presence on the ground in

Kuwait

EFG Hermes IFA, the brokerage arm of EFG Hermes in Kuwait, is a brokerage firm on the

Kuwait Stock Exchange Boursa Kuwait Securities Co., is the private-sector corporate owner and operator of the Kuwait Stock Exchange (KSE), the national stock market of Kuwait. History Although several share holding companies (such as the National Bank of Kuwait in 1 ...

(KSE) with a client base including a wide array of retail, VIP and high-net-worth clients, as well as local, regional, and international institutional investors. EFG Hermes IFA provides the full range of brokerage services including an online trading platform. The firm has maintained its position as the top brokerage firm in Kuwait.

Jordan

Since inception, EFG Hermes Jordan has maintained a client base of around 6,000 investors by the end of 1H2017 ranging from retail, VIP, high net worth clients, local and regional institutions as well as foreign institutional investors. The firm offers its client base access to senior and executive management teams of publicly listed companies, promoting a business-friendly climate in Jordan. Moreover, EFG Hermes Jordan is the only local broker that has the support of a large and dedicated research division that publishes thorough fundamental analysis, sector analysis and strategy reports on the country and the market. Currently, the research team covers five of the largest listed companies that represent a market capitalization of 45%.

Kenya

EFG Hermes Kenya launched its operations in 2017, being the firm’s first foray into Sub-Saharan Africa in a step that will serve as an East African hub into more neighboring markets. The company provides securities brokerage, research and corporate advisory services spanning Kenya and neighboring markets.

Nigeria

In 2018, EFG Hermes expanded its global presence into the largest economy in West Africa through the acquisition of Primera Africa Securities Limited, now EFG Hermes Nigeria Limited. EFG Hermes Nigeria is licensed by the Securities and Exchange Commission and the Nigerian Stock Exchange to carry out brokerage and research coverage services.

United States

EFG Hermes USA, Inc. is a subsidiary of EFG Holding and is a member of FINRA and SIPC. The office was established to serve Western institutional clients residing in North America and provides coverage of 75 frontier emerging markets (FEM) or 100% of FTSE's FEM index to its clients.

Bangladesh

EFG Hermes Bangladesh was inaugurated as rep office in Dhaka, the capital city of Bangladesh, to serve the firm’s network of global institutional clients. The addition of Bangladesh to the firm’s frontier platform came as part of EFG Hermes’ drive to expand representation in high-potential frontier emerging markets.

Vietnam

EFG Hermes entered an agreement in 2019 with ACBS - the securities brokerage arm of ACB

Asia Commercial Bank Asia Commercial Bank, often abbreviated to ACB, is one of the largest private banks in Vietnam by assets, headquartered at 442 Nguyễn Thị Minh Khai, Ward 5, District 3, Ho Chi Minh City. It was registered on 19 May 1993 and began operations ...

Vietnam Vietnam, officially the Socialist Republic of Vietnam (SRV), is a country at the eastern edge of mainland Southeast Asia, with an area of about and a population of over 100 million, making it the world's List of countries and depende ...

to offer its clients on-ground access to the local capital markets.

References

External links

Abraaj Capital. Investor Relations. Retrieved September 28, 2006Arab Decision, Egypt, other Financial Institutions
* ttp://www.ameinfo.com/88697.html Ameinfo. UAE retail investors moving online as market grows*American University. Sources and links. Retrieved September 1, 2006
Bank Audi. Jordanian Economic Report. Retrieved August 29, 2006Center for administrative Innovation in the Euro-Mediterranean Region. Jordan Administrative Reform, Innovation and Maintenance

Central Intelligence Agency (2004). The World Fact Book. Retrieved on October 3, 2006

EFG Hermes. Investor Relations. Retrieved on September 14, 2006Library of Congress, Federal Research Division, Country Studies. Jordan. Retrieved October 3, 2006Moussa Najla. Abraaj Capital makes offer on EFG Hermes Shares. Retrieved November 20, 2006
*

Index of Economic Freedom The ''Index of Economic Freedom'' is an annual index and ranking created in 1995 by The Heritage Foundation and ''The Wall Street Journal'' to measure the degree of economic freedom in the world's nations. The creators of the index assert that ...

The Heritage Foundation The Heritage Foundation (or simply Heritage) is an American Conservatism in the United States, conservative think tank based in Washington, D.C. Founded in 1973, it took a leading role in the conservative movement in the 1980s during the Presi ...

, Retrieved August 29, 2006
Saban Center for Middle East Policy. Luncheon Address: Suhair Al-Ali. Retrieved October 17, 2006, from Miller Reporting Co
{{DEFAULTSORT:Efg-Hermes Holding Company Financial services companies established in 1984 Banks established in 1984 Investment banks Private equity firms of the Middle East Conglomerate companies of Egypt Financial services companies of Egypt Companies based in Cairo Companies in the EGX 30 Asset management companies