Egypt | EGX

Heliopolis Company for Housing & Development (HELI) is 72.3% owned by the state through the Holding Company for Construction & Development (HCCD), a subsidiary of Ministry of Public Business Sector. With more than 100 years of experience, HELI is considered one of the oldest real estate developers in Egypt. It was established in 1905 by the Belgian engineer Baron Empain in order to develop Heliopolis suburb, known as "Masr Al Jadidah", in the northeast of Cairo. HELI's main role was to work as a master developer for Heliopolis district through preparing land plots and providing them with the infrastructure ans selling these plots to be developed by others. Currently, Heliopolis district is one of the most well-known districts in Cairo and Egypt as a whole that is inhabited by the upper-middle and high-end sedment.

Fawry is a textbook growth company banking on low internet penetration, growing smartphone usage, and the Egyptian government’s intent to digitize the economy. The company has taken the first-mover advantage building its network and establishing its brand. We estimate Fawry has a dominating c.47% market share based on the number of POS machines in June 2020. Entry into the Egyptian market has significant barriers, primarily consisting of brand awareness and setting up long-term agreements with suppliers and banks who handle the actual transfer of funds. In addition, a potential new entrant must be able to meet high security expectations, which is an ever-rising bar. Another challenge facing new entrants is setting up the necessary agreements with billing companies including utility companies, and other different service providers including telecommunication companies, transportation companies (ticketing), education providers, insurance providers, etc.

The local carpet industry is dominated by Oriental Weavers Carpet, capturing c.80% market share. Growth potential is attributable to a sizable and growing (2.5% annually) population with favorable demographics. However, the competition in the local market is fierce especially when it comes to Tirkish imports. Currently, the Egyptian government is investigating the impact of importer machine-made carpets int the local industry and is considering applying anti-dumping fees on Turkich imports.