DUBAI, Jan 8 (Reuters) - Arqaam Capital, a Dubai-based regional investment bank, has acquired Egyptian brokerage firm El Rashad Securities, tapping into low valuations and growth prospects in the politically unstable North African country.
No financial details of the transaction were provided but Arqaam bought the entire 100-percent stake in El Rashad from Al Rashad Holding Co, it said in a statement on Sunday.
The deal will help Arqaam’s institutional and high net worth (HNW) clients gain access to the Egyptian market, Arqaam said.
“We have a positive view on Egypt in the medium- and long-term,” said Tarek Lotfy, managing director of capital markets at Arqaam.
“We believe that Egypt will recover from its current political instability and therefore now is the right time to invest in the country.”
Egypt saw violent political protests in 2011 which led to several suspensions of its stock market and a sharp slump in equity valuations. Few other financial firms have been eyeing the region to take advantage of low valuations.
In September, sources told Reuters that Shuaa Capital had looked at least two Egyptian brokerage companies as potential acquisition candidates. (Reporting by Dinesh Nair, Editing by Rachna Uppal)