Egyptian billionaire Yasseen Mansour, chairman of prominent real estate developer Palm Hills Development, has seen his wealth decline due to the recent devaluation of the Egyptian pound.
Since March 6, Mansour’s stake in Palm Hills has declined by $12.3 million. This downturn follows the Central Bank of Egypt’s (CBE) decision to implement a more market-driven exchange rate system, leading to the depreciation of the Egyptian pound.
Palm Hills, a subsidiary of the Mansour Group, is a major Egyptian developer known for integrated residential, commercial, and resort projects. One of Egypt and Africa’s wealthiest individuals, Yasseen Mansour holds a significant 6.87 percent stake in Palm Hills, translating to roughly 202 million ordinary shares.
Egyptian billionaire loses millions as Central Bank loosens currency peg
The CBE’s move towards a market-determined exchange rate aims to address the country’s critical foreign currency shortage. To further tackle this issue, the bank raised interest rates by 600 basis points to 27.25 percent.
This devaluation, coupled with the decline in Palm Hills’ share price on the Egyptian Exchange, has caused a significant drop in the value of Mansour’s stake. It has fallen from an estimated $28.15 million to $15.83 million.
Mansour holds steady on Forbes’ billionaires list as Egyptian pound weakens
Despite this setback, Mansour remains a prominent figure in the African business scene. Forbes estimates his current net worth at $1.2 billion, ranking him as the world’s 2,329th wealthiest individual.
As of this report, the pound is trading at a record low of 47.8 against the U.S. dollar, signifying a year-to-date depreciation of 35.36 percent according to Xe.com.
