Egyptian investment bank EFG Hermes is expanding its presence in high-growth frontier markets including Nigeria, Bangladesh and Pakistan to service investor clients, and Vietnam is its next target, said divisional chief executive Ali Khalpey.
The lender aims to complete the acquisition of Lagos-based Primera Africa – announced in July – “in the next 10 days”, as it deepens its presence in Nigeria. The brokerage and research house, which services local and foreign investors, will be rebranded as EFG Hermes Nigeria, Mr Khalpey added.
In Vietnam, a young population, rising quality of education and calls for the Southeast Asian economy to be included in the MSCI Emerging Markets index helped Vietnam’s stock market to become Asia’s best-performing last year.
"Vietnam is high on our agenda and our next target market, and we are in the early stages [of establishing a presence] there," said Mr Khalpey, who is chief executive of EFG Hermes Frontier division, in an interview with The National on Sunday.
However, there remain regulatory barriers to investment and EFG Hermes may not set up a presence in Vietnam until after 2019, according to Mr Khalpey. The lender currently conducts transactions through an affiliate Vietnamese bank.
EFG Hermes announced its intention to expand its frontier markets unit last January, when Mr Khalpey was appointed chief executive. The division, which has a particular focus on securities brokerage, investment banking and research, has since progressed its expansion strategy in five markets.
These are: the UK, where it is now fully licensed to service a broad spectrum of frontier markets; Kenya, where it has a greenfield presence; Nigeria; Pakistan; and Bangladesh, where it opened a representative office in January.
_______________
Read more:
Exclusive: EFG Hermes to enter second sub-Saharan African country in 2018
Profitability of Mena companies to climb 12.7% in the second quarter, EFG Hermes says
EFG Hermes upgrades Saudi Arabia ahead of anticipated EM index inclusion
_______________
The Lagos acquisition will help the bank establish Nigeria as a hub to service other West African markets. Nigeria itself has broadened its appeal through reforms including currency devaluation since 2016, which has resulted in “lots of mis-priced assets that create smart investment opportunities”, said Mr Khalpey. “Nigeria will always be a talking point for investors.”
Bangladesh is one of the markets he is "most excited" about, despite high barriers to entry. The Asian economy, which is growing at around 6-7 per cent annually and enjoys a stable political environment and young, educated population, could emerge as the biggest beneficiary of the US-China trade spat because of its sizeable textiles industry, which competes with that of China, he told The National.
“As Chinese textiles manufacturing becomes pricier, people may look to Bangladesh as a replacement,” he said. However, the country faces a degree of currency risk. As China and its other neighbours devalue, Bangladesh could lose its competitive edge.
Mr Khalpey is also optimistic about Pakistan, whose new government is “finding its feet and aligning itself with high profile investors” as it seeks to weed out corruption.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Homie%20Portal%20LLC%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20End%20of%202021%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EAbdulla%20Al%20Kamda%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20Undisclosed%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2014%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ELaunch%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
