Alex Pitt

It was a pleasure joining Bloomberg ASharq News live earlier today to discuss the macro outlook for Egypt and the region. Three main fundamental drivers govern the macro outlook over 2024/2025: 1. Inflationary pressures persist, low probability for full-fledged geopolitical escalation, but continued tug of tensions & skirmishes back & forth between parties -therefore hot money exodus on the back of geopolitics also a low probability at this stage. On inflation, while inflation moderated to 24.4% in July, from 27.5% in June, cigarettes rose by 55.2% in June, energy by 15% on average in July, pharmaceuticals price increases of 30% to 50% are expected to filter through in the coming months. Similarly, 12 months NDF levels show the pound at EGP57.2, a c. 16% weakening to the spot rate. 2. M2 growth is still expected to continue With additional inflows from REH deal, & other multilateral funding package of c. USD58.0 bn still coming through (10-year CDS levels down to 700.5 bps). Other factors contributing to M2 growth include increase in remittances by 73.8% in May YoY, I forecast annual remittances in 2024 at USD25.0 bn, up from USD22.1 bn in 2023 (USD32.0 bn in 2022). 3. Continued fiscal budgetary pressures on inflation will persist. FY24 overall fiscal deficit saw a one-off reduction due to REH flows of c. EGP570 bn (USD12 bn) to book 3.6%. Excluding this one-off overall fiscal deficit would have booked 7.7%. Increased use of OMOs by the CBE recently, one of three main policy tools targeting monetary stability is expected to continue. On the bright side, new tax revenue streams from digital platforms, e-commerce & Fintech operators are beginning to have a positive impact on tax collections, while FDI numbers to this sector continue to be resilient with significant impact on financial inclusion. New offerings on the stock exchange should also generate an additional USD2.0 to USD2.5 billion in inflows. Thank you very much to the Bloomberg ASharq team. @Maya Hojeiji, @Mohamed El Selti @Nour Amache Riham El Chayeb Mohammed Saeed from the Bloomberg AlSharq team for their professionalism & hosting. #CentralBanks #MonetaryPolicy #GlobalEM #GlobalPolicyRates #KEF #KBS Link to the full interview below: https://lnkd.in/e_bPf6P9

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Saudi PIF Nears Deal to Invest in PGA Tour Enterprises : Sovereign wealth fund is in advanced talks for roughly 6% : PIF investment could value unit at about $12 billion

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These valuable lessons underscore the crucial role of adaptation and innovation in response to rapid technological advancements in the business landscape. Embracing technology, effective change management, and fostering continuous innovation are key to thriving in a dynamic market. Resisting change without justification can have negative consequences, highlighting the importance of clear communication, strategic partnerships, and cultivating a culture of continuous improvement. Investing in technology not only enhances competitiveness but also streamlines processes and reduces operational costs. Leaders who embrace flexibility and prioritize innovation are better equipped to navigate technological shifts and drive organizational success. #Adaptation #Innovation #Technology #BusinessTransformation

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The Middle East Investment Expo and Awards hosted by Dotmount Communications may have come and gone but its lessons continue to resonate with everyone who attended the events. Indeed, attending and speaking at the Middle East Investors Expo held in Nigeria from July 4th to July 5th was an incredibly rewarding experience. I spoke on the topic, Democratizing Technology: Building the Next Generation of Profitable and Impactful Businesses. The event brought together visionary entrepreneurs, investors, and industry leaders, all united by a common goal of harnessing the potential of startups, driving economic growth and solving global challenges. Engaging with forward-thinking minds at the expo highlighted the immense possibilities that lie ahead for startups. It was a testament of what is possible with a cross-pollination of ideas between Africa and the Middle East. The discussions underscored the importance of working together and fostering an ecosystem that supports innovation, collaboration, and sustainable development. With the right support and partnership, startups in Africa can lead the charge in creating jobs, advancing technology, and addressing critical issues like climate change and inequality. Nigeria and the Middle East stand at the cusp of greatness with opportunities and partnerships that are mutually beneficial. Now is the time to build the next generation of businesses that not only drive economic growth but also make a positive impact on society. By working together, we can create a future where startups are at the forefront of change, leading the way to a more prosperous and equitable world. The global landscape offers unprecedented opportunities for startups to thrive and make a significant impact. By leveraging innovation, technology, and strategic partnerships, startups can tap into vast markets and create businesses that are both profitable and transformative. For Nigeria and the Middle East, the time is ripe and I believe we can continue to collaborate, innovate, and build a future where startups lead the way to a better world. #startupgrowth ##GlobalOpportunities #innovation #impactfulbusiness ##sustainabledevelopment #middleastexpo #Nigeria #Africa

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A Dubai-based fund-of-funds focused on backing emerging venture investors, has raised $5 million of the $10 million target for its debut fund. Amkan Ventures is connecting family offices in the Gulf region and emerging U.S.-based VCs — two groups unlikely to otherwise meet. A fund led by Female GP Raida Daouk El Jisr decided to raise a fund after helping a number of family offices and other institutions vet and invest in American venture firms and tech startups as a consultant and building out another prior employer's portfolio. #fundraising #investment #GCC #USfunds #venturecapitalists #limitedpartners #generalpartners #Funds #LPs #GPs #VCs #emergingfunds #fundmangergs

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I also think deal volume will uptick in the second half of 2025. Data also tells us that: 📊 LPs and investors are investing early stage because they’re looking for a real alpha. Obviously, returns 💵 📊 Large fund sizes are nascent in the region which will leave room for venture debt to grow 📈 📊 IPOs and M&A transactions will trigger more cash to flow back into ventures with higher confidence from winning investors to write even more and bigger checks 💰 Thanks, Nuwa Capital and Khaled Talhouni for insights.

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🌍 Are Foreign Investors Regaining Interest in MENA? 🚨 That's the question we've been exploring at MAGNiTT with our latest piece. Early 2023 saw major Silicon Valley players like Andreessen Horowitz, Sequoia Capital, Tiger Global Management, and IVP visiting regional sovereign wealth funds, signaling potential interest. However, that interest didn’t fully materialize last year in the form of investments. This year tells a different story. In 2024, #MENA has experienced a 32% YoY increase in investor participation in the first half, driven largely by international investors. While late-stage investments remain cautious, these investors are contributing with smaller tickets. 🇦🇪 🇸🇦 Unsurprisingly, the #UAE and #SaudiArabia are the prime destinations for global investors in MENA. The UAE stands out, accounting for about 57% of the country's investors in H1'24. While familiar names like 500 Global and Antler continue to make big waves in the region, we've also seen new players such as India’s Cogitent Ventures, the UK’s Quadri Ventures, and Denmark’s A.P. Moller Capital making their first regional investments. MAGNiTT’s latest article dives into the numbers, explores the evolution, and discusses the main reasons behind this trend and what to expect next. Check it out here: Read More https://lnkd.in/dxqJ9iXR Got any guesses on which big leagues are eyeing their entry into the region? Share your thoughts below! 👇 #MENA #Global #InvestmentTrends #VentureCapital #Funding #UAE #KSA #Investors #Investment #Innovation

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GCC Sukuk Issuance Hits Record High in 2024 The Gulf Co-operation Council (GCC) region has seen a surge in sukuk issuances, reaching a record high of $82.1 billion in 2024. This represents a significant increase from the $56.1 billion issued in 2023. Qatar and Saudi Arabia have been key drivers of this growth, reflecting the region's commitment to Islamic finance and sustainable financing solutions. The UAE and Qatar have shown particularly strong growth, indicating their expanding economies and the increasing demand for sukuk. Continued Growth Expected Kamco Invest predicts continued growth in sukuk issuances in 2025, driven by a strong project pipeline and diversification goals in the GCC. #Sukuk #IslamicFinance #GCC #Finance #Growth #SustainableFinance * https://lnkd.in/dueN3cqQ

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Summary: Despite Saudi Arabia's history of human rights abuses, there is a growing interest from U.S.-based investors to invest in startups in the Middle Eastern nation. General Catalyst is planning to invest in a fintech startup, Lean Technology, and other firms such as Coatue Management and Andreessen Horowitz have recently backed Saudi Arabian startups. Key takeaways: Despite concerns about the country's human rights record, some U.S. investors are showing a willingness to invest in Saudi Arabian startups, potentially driven by the country's large and growing market. General Catalyst investment in Lean Technology is a significant step in this trend, as it is the firm's first investment in a Middle Eastern nation. Other U.S. firms, such as Coatue Management and a16z, have also recently backed Saudi Arabian startups or expanded their presence in the country through investments in related industries (such as co-living). Counter arguments: There may be ethical concerns about investing in a country with a record of human rights abuses and suppressing dissent. The motivations behind these investments may also be driven by the goal of gaining access to the huge Saudi Arabian market, rather than solely supporting the growth of the country's startups. #venturecapital #vc #venture #startups

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I visited the Wahed office on Baker Street in London and was truly fascinated by the level of technology, innovation, and solutions they provide to support diverse communities in ethical-based investment and financial services. I would like to thank As’ad Layth for hosting us and my partner, Bilal Mahomed, for leading the way as we explored the vast opportunities available in this space. #Finance #Investment #HalalEconomy #FinTech

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I recently gave an interview to MEA Finance Magazine, where I had the opportunity to share my thoughts on the state of private equity and venture capital in the GCC. The discussion covered the regional economy, factors driving startup activity, trending sectors for investment, and the ESG considerations. Read the full interview here: https://lnkd.in/dhv-bQrh #venturecapital #privateequity #investmenttrends #GCC Aument Capital Partners Andrew Dalton Alex Lawrence

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The technological advancements pioneered by Elon Musk hold significant promise in facilitating peace initiatives in the Middle East. Here are some key ways his innovations could contribute: - **Starlink Satellite Internet**: Through Starlink's network of low Earth orbit satellites, high-speed internet access can be provided in conflict zones where traditional communication infrastructure is lacking. This connectivity can aid humanitarian endeavors, enhance coordination among aid groups, and ensure civilians remain connected during tumultuous times. - **SpaceX Launch Services**: SpaceX's prowess in launching satellites can bolster peacekeeping and monitoring missions. Satellites can be utilized for surveillance purposes to oversee ceasefire agreements, monitor movements, and gather crucial intelligence to prevent conflicts from escalating. - **Tesla Energy Solutions**: Tesla's solar panels and energy storage systems offer sustainable and dependable power sources in conflict-affected regions. This energy support can sustain vital services such as hospitals, communication hubs, and refugee camps, thereby elevating the living conditions of those impacted by conflicts. - **Neuralink and AI**: Musk's Neuralink and AI technologies, though still evolving, harbor the potential to transform communication and healthcare landscapes. In the future, these innovations could revolutionize medical treatments and enhance communication channels within conflict areas. - **Boring Company Tunnels**: The Boring Company's tunneling technology can be harnessed to construct secure passageways for civilians and aid workers. Additionally, underground infrastructure created through this technology could offer heightened protection against potential attacks. Elon Musk's technological breakthroughs present pragmatic solutions that can bolster peacekeeping and humanitarian endeavors, offering tangible benefits to conflict zones.

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Exploring Venture Capital Valuations in MENA: Jada Fund of Funds Report Valuing portfolio companies is a critical aspect of the venture capital process, filled with challenges, especially in the context of startups in emerging markets. With the collaboration of Jada Fund of Funds, our newly launched report delves into the methodologies used by venture capitalists and provides insights gathered from seasoned fund managers and investors across the MENA region. Key Valuation Methodologies 1. Discounted Cash Flow (DCF) Analysis: - DCF Method: This involves estimating the company's future cash flows and discounting them back to their present value using an appropriate discount rate. - Challenges: In the case of startups, projecting future cash flows can be highly speculative due to the limited historical data and market volatility. 2. Comparable Company Analysis: - Comps Method: This method involves valuing a company based on how similar companies in the industry are being valued, often using multiples such as Price-to-Earnings (P/E) or Enterprise Value-to-EBITDA (EV/EBITDA). - Benefits: It helps to benchmark valuations against market standards. - Drawbacks: It might be difficult to find truly comparable companies. 3. Precedent Transactions: - Transaction Method: This approach looks at similar companies that have been recently sold or funded and uses these transactions to estimate value. - Advantages; Provides real-market benchmarks. - Limitations: Market conditions at the time of past transactions might differ from the current context. 4. Venture Capital Method (VC Method) - VC Method: Commonly used in early-stage investments, this method involves projecting an exit scenario, estimating the terminal value, and discounting it back to the present considering the risk. - Simplicity and Relevance: It is straightforward and tailored for high-risk environments but relies heavily on assumptions about future exits. 5. Modified Economic Value Added (EVA): - EVA Method: Focuses on the economic profit of the company by assessing returns in excess of the company’s cost of capital. - Usefulness: Particularly useful in assessing long-term value creation beyond accounting profits. Insights from Experts Challenges in the MENA Region - Limited Historical Data: Startups in emerging markets often don’t have a long operating history, making traditional valuation methods less reliable. - Market Volatility: The dynamic and often volatile nature of emerging markets adds another layer of difficulty in making accurate projections. - Regulatory Environment: Varying regulations across different countries in the MENA region can also impact valuation. By addressing these challenges and leveraging a mix of valuation methodologies, venture capitalists are better equipped to make informed investment. Report by Claudia Zeisberger Repost by Salem Bagami #VC #valuation #startups #MENA #JadaFund

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Abu Dhabi Finance Week is now one of the most significant finance events in the world. Global leaders across sovereign, institutional and private wealth, asset management, banking and tech gather in the unique peer-to-peer setting to discuss innovation, network and build partnerships. With over $40 trillion AUM and CEOs and decision maker of most of the globally impactful organisations in the world represented, and at a time when the UAE is rapidly expanding its global influence and status as a bulwark of stability and dynamism, Abu Dhabi is the place to be in the world this week. MEIMA is the UAE and Gulf region's preeminent asset management industry body, and a key actor within ADFW the UAE growth story. We are hosting our annual roundtable at 2pm on 10 December at ADFW, where one of the panels which I have the honour to moderate is on how AI is tools are already impacting the asset management industry and will revolutionise industry business models in the coming years. Please join us for a great discussion. Reserve Your Spot Seats are limited, so confirm your participation at the earliest by emailing [email protected]. #adfw #meima #capitalofcapital #ai #innovation #assetmanagement Rahul Kumar, John Abbott, Mehdi El Amine Fichtali, Raj Rathor, David Rothon, Bhaskar Dasgupta

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It was great to be part of the roundtable with H.E. Alia Abdulla AlMazrouei and fellow VCs. Coming together as an ecosystem is so important. Having tough, forward-thinking conversations with key stakeholders is essential to building the support system for UAE entrepreneurs. Read the article here: https://lnkd.in/eiNXqgpW

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Damning report on #Lebanon from Fitch Ratings Ratings has affirmed Lebanon's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'Restricted Default' (RD). Fitch has subsequently withdrawn Lebanon's IDRs and Country Ceiling. Fitch Ratings is withdrawing Lebanon's ratings as Fitch no longer has sufficient information to maintain the ratings due to the unavailability of certain key data. Accordingly, Fitch will no longer provide ratings (or analytical coverage) for Lebanon. These ratings are unsolicited and the issuer has no obligation to provide information.

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