EFG Hermes Commits $150M to Egypt's NBFI/FinTech, Expands Saudi Education Footprint
EFG Hermes, a leading investment bank in the MENA region, is set to inject USD $150 million into non-banking financial institutions (NBFI) and FinTech companies in Egypt, while simultaneously expanding its education sector investments in Saudi Arabia. These strategic moves signal EFG Hermes' continued focus on key growth sectors across the region.
Key Investments and Expansion
The major financial commitment includes the allocation of USD $150 million specifically for investments within the Egyptian market. This capital is earmarked to support the growth of the NBFI and FinTech sectors, areas EFG Hermes has identified as critical for future financial inclusion and economic development in Egypt.
Concurrently, EFG Hermes is also broadening its reach in the Saudi Arabian education sector. Through its EFG Hermes Education Opportunity Fund, the firm is partnering to establish a new international school in Jeddah.
Focusing on Education in KSA
The expansion in Saudi Arabia is focused on the education sector, seen as a high-growth area driven by the Kingdom's Vision 2030 initiatives. EFG Hermes, in partnership with GEMS Education and Hassana Investment Company, is developing a new K-12 international school under the GEMS brand in Jeddah.
The project represents an investment of approximately SAR 300 million, equivalent to about USD $80 million.
Construction has reportedly commenced.
The new school is targeted to open its doors in 2026.
This initiative builds on EFG Hermes' existing investments in the Saudi education landscape, aiming to meet the increasing demand for quality private schooling.
Driving NBFI and FinTech in Egypt
The significant USD $150 million allocation towards Egypt highlights EFG Hermes' belief in the potential of the country's NBFI and FinTech ecosystem. This capital infusion is expected to fuel innovation, support startups, and potentially facilitate mergers and acquisitions within these rapidly evolving sectors.
NBFI includes areas like leasing, factoring, microfinance, and consumer finance, which are crucial for providing access to credit and financial services beyond traditional banking.
FinTech development is vital for enhancing digital payments, improving financial efficiency, and fostering a more inclusive financial environment.
This investment is poised to play a key role in scaling promising companies and strengthening the infrastructure of Egypt's digital economy.
About EFG Hermes
EFG Hermes is a leading financial services corporation in frontier and emerging markets (FEM). Headquartered in Egypt, the company provides a broad range of financial services including investment banking, asset management, securities brokerage, research, and private equity. EFG Hermes has a significant presence and track record across the MENA region and beyond, actively investing in and advising businesses across various sectors.
Looking Ahead
These strategic investments in Egypt and Saudi Arabia underscore EFG Hermes' strategy to capitalize on high-growth opportunities in key MENA markets. The focus on NBFI/FinTech in Egypt and the expansion of the education portfolio in Saudi Arabia reflect sectors aligned with regional economic diversification goals and demographic trends. These moves are expected to further solidify EFG Hermes' position as a major player driving financial and social infrastructure development in the region.
Source: Waya Media