Egyptian tycoon Ahmed El Sewedy’s electric company to set up new firm in Saudi Arabia
El Sewedy Electric, a multinational cable and electrical equipment manufacturer led by Egyptian businessman Ahmed El Sewedy, has announced plans to establish a new subsidiary in Saudi Arabia as the leading group continues to diversify its operations across the region.
The move, which aligns with efforts to deepen Egypt-Saudi Arabia trade relations, will create opportunities for investors and other stakeholders in both countries, as well as strengthen Elsewedy Electric’s participation in the manufacturing and energy sectors.
The new entity, which will launch following regulatory approval from concerned authorities, will be entirely or partially owned by the Egyptian electrical equipment manufacturer and will have a capital of SR500,000 ($134,000) drawn from Elsewedy Electric’s cash reserve.
El Sewedy Electric, an Egyptian multinational cable and electrical equipment manufacturer led by Egyptian multimillionaire businessman Ahmed El Sewedy, was founded in 1938 by the El Sewedy family.
The billionaire family, represented by Sadek, Ahmed, and Mohammed El Sewedy, owns 68 percent of the corporation, a stake worth EGP13.4 billion ($547 million) at the time of writing.
As one of the leading players in the electrical equipment manufacturing industry, the company has played an important role in the development of electrical projects throughout the Middle East and North Africa.
Its involvement in a number of Middle East and North African development projects has had a significant impact on its financial success in recent years, as it continues to reap the benefits of a strong award pipeline and pricing strategies that are sensitive to macroeconomic inflation pressures.
Its profit rose by 32.6 percent in the first nine months of its 2022 fiscal year, from EGP2.51 billion ($102.1 million) to EGP3.33 billion ($135.5 million), thanks to a double-digit increase in revenue from EGP40.88 billion ($1.66 billion) to EGP62.57 billion ($2.54 billion).