Egyptian tycoon Medhat Khalil earns $4.2 million in just 12 days

Yusuf Abdulfatai -

Key Points:

  • Medhat Khalil’s stake in Raya Holding surges by $4.23 million as the company’s shares rally 17.1% on the Egyptian Exchange.
  • The share price increase reverses a $3.02 million loss for Khalil, cementing his status as a top investor on the EGX.
  • Despite local currency gains, the Egyptian pound’s devaluation leads to a 17.8 percent year-to-date decline for Raya Holding in dollar terms.

Egyptian businessman Medhat Khalil, founder and chairman of Raya Holding, a leading investment conglomerate, has seen his wealth rebound in recent days on the back of a surge in the company’s share price.

Khalil’s stake in Raya Holding has increased by EGP 199.6 million ($4.23 million) over the past 12 days. This gain coincides with a 17.1 percent upswing in the group’s shares on the Egyptian Exchange (EGX), highlighting renewed investor confidence.

This rally reverses a period of decline for Khalil, who faced a $3.02 million loss between May 2nd and 13th. During that time, the value of his stake dropped from EGP 1.37 billion ($29.04 million) to EGP 1.22 billion ($26.02 million).

Medhat Khalil’s stake climbs

Established in 1999 through a merger between entities owned by Khalil and Orascom Group, Raya Holding plays a crucial role in Egypt’s investment landscape. Its share price has jumped from EGP3.03 ($0.0645) to EGP3.54 ($0.075), pushing the company’s market capitalization above $160 million.

Khalil currently holds an 18.37 percent stake in Raya Holding, totaling 383,851,916.40 shares. As a result of the double-digit share price increase, the market value of his stake has risen to EGP 1.36 billion ($28.89 million) from EGP 1.16 billion ($24.66 million).

Your Life and Your Money: Devaluation dampens gains

However, despite the share price increase, a broader economic reality casts a shadow. The Egyptian pound’s devaluation against the U.S. dollar has eroded gains, leading to a 17.82 percent year-to-date decline for Raya Holding in dollar terms.

While Raya Holding’s share price has increased over 28 percent year-to-date in local currency terms, the Egyptian pound’s devaluation underscores the complex dynamics at play for investors in the region. For example, a $100,000 investment in Raya Holding at the start of the year would now be valued at just $82,185 due to currency depreciation.