Egypt’s richest man Nassef Sawiris sees near $300-million increase in net worth in 2023

Egyptian billionaire Nassef Sawiris, who is now the fourth-richest man in Africa, has witnessed a $294-million surge in his net worth since the beginning of the year, thanks to a sustained increase in the market value of his publicly traded assets in Europe.

According to the Bloomberg Billionaires Index, Sawiris who derives the majority of his wealth from his six-percent stake in German sportswear behemoth, Adidas, and his 38.8-percent stake in OCI N.V., has seen his net worth increase by $294 million since the start of the year, from $7.03 billion on Jan. 1 to $7.32 billion on March 10.

Nassef Sawiris’ net worth skyrockets by $45.8 million in a single day

At the close of trading on Thurs., March 9, his net worth rose by $45.8 million, propelling his wealth past the $7.3-billion threshold and solidifying his position not only as Egypt’s wealthiest person but also as one of Africa’s richest billionaires.

The surge in his net worth above the $7.3-billion threshold can be attributed to the performance of his six percent stake in the multinational sportswear behemoth, Adidas.

This reflects investor optimism in Adidas’ “transition strategy”, despite challenging market conditions and the departure of Kanye West, which negatively impacted the company’s earnings and revenue.

Adidas shares rise by almost 6 percent despite $765 million Q4 loss

Despite posting a fourth-quarter loss of €724 million ($765 million) and a net loss of €482 million ($510 million) from continuing operations, Adidas’ share price increased by nearly six percent this week, pushing its year-to-date price gains to 18.9 percent.

Investors continue to show interest in the company, despite projecting a full-year operating loss of €700 million ($740 million) in 2023, which will be its first annual loss in 31 years.

Adidas CEO Bjorn Gulden has disclosed that 2023 will be a “transition year” for the brand, and the group will focus on reducing inventories and minimizing discounts as part of its efforts to regain profitability by 2024.

This strategic shift is crucial for Adidas to maintain its competitive edge in the global market, and Gulden has emphasized its importance since taking over from Kasper Rorsted earlier this year.