PH
Egypt’s El-Sewedy family’s once-billion-dollar fortune has taken a huge knock as Elsewedy Electric, the family’s crown jewel, has plummeted in value. El-Sewedys’ controlling interest has been reduced by EGP5.36 billion ($324.08 million) due to a 25% drop in the company’s share price during the past two weeks.
This decline has removed the El-Sewedys from the ranks of Egypt’s billionaires. On March 14, their 68.1 percent interest in Elsewedy Electric was valued at EGP61.34 billion ($1.29 billion), but has since decreased to EGP45.98 billion ($970.05 million) as of this report. The company’s market value has likewise fallen below $1.5 billion.
The current market volatility has been the principal cause of Elsewedy Electric’s problems. Investor confidence has been shattered, resulting in a precipitous decrease in the company’s stock price. Ahmed El-Sewedy and his siblings, Sadek and Mohammed, who own the company, have bore the brunt of its decline.
Elsewedy Electric, founded in 1938, has long been a dominant force in Egypt’s electrical equipment business, contributing considerably to projects throughout the Middle East and North Africa. However, the recent market volatility casts doubt on the company’s future prospects.
While the El-Sewedy family has clearly faced financial setbacks, it is worth noting that they remain active investors in the Egyptian Exchange. While they are no longer billionaires, they remain among Egypt’s and North Africa’s wealthiest people.
Elsewedy Electric’s future and the El-Sewedy family’s fortune are dependent on the company’s ability to negotiate the current market environment and regain investor confidence.
