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Key Points
- The Khamis family's stake in Oriental Weavers has dropped by $17 million due to the Egyptian pound’s depreciation in 2024.
- Despite a 50.7% rise in local currency, Oriental Weavers' stock lost 8.35% in dollar terms due to the pound’s devaluation.
- The Khamis family's 56.48% stake, worth $188.8 million, saw a $17.1 million loss after currency depreciation wiped out local currency gains.
The Khamis family of Egypt, renowned for their pivotal role in the carpet industry, has faced a significant financial setback this year. The market value of their stake in Oriental Weavers, the leading carpet manufacturer, has dropped by more than $17 million, due to the sharp devaluation of the Egyptian pound.
The currency’s depreciation, which plunged by nearly 40 percent in 2024, has severely impacted the dollar-denominated value of assets across Egypt, including the family’s holdings in Oriental Weavers. While the company experienced substantial growth in local currency terms, these gains were effectively erased when converted to U.S. dollars, highlighting the widespread economic challenges stemming from the Central Bank of Egypt's exchange rate liberalization.
Currency slide cuts into Oriental Weavers' gains
The Khamis family, including prominent members such as Yasmine Mohamed Khamis, holds a 56.48 percent controlling interest in Oriental Weavers, equivalent to 376.32 million ordinary shares. While this stake has declined in value by $17.19 million year-to-date, the losses are compounded by broader economic challenges.
Notably, the family’s holdings could have appreciated by $104.49 million if not for the sharp 39.21 percent depreciation of the Egyptian pound against the U.S. dollar. This devaluation, a consequence of the Central Bank of Egypt’s exchange rate liberalization efforts, has significantly impacted assets and corporate valuations across the country, further straining Oriental Weavers’ market performance.
Khamis Family's stake down $17 million
Oriental Weavers, a leading global manufacturer with facilities in three countries and sales in over 150 markets, continues to navigate the challenges of local market growth and currency volatility. Despite these hurdles, the company has demonstrated resilience, underpinned by its robust performance in a turbulent economic environment.
In local currency terms, Oriental Weavers' share price has surged by 50.7 percent since the beginning of the year, climbing from EGP16.91 to EGP25.49. However, the devaluation of the Egyptian pound has reversed these gains into an 8.35 percent loss in dollar terms, reducing the dollar-denominated value of the company’s shares from $0.50 to $0.33 and pushing its market capitalization below $340 million.
Similarly, the market value of the Khamis family’s stake in Oriental Weavers has grown by EGP3.23 billion in local currency, rising from EGP6.36 billion on Jan. 1 to EGP9.59 billion at the time of this report. Yet, the Egyptian pound’s devaluation wiped out these gains in dollar terms, with the family’s stake falling from $205.61 million to $188.81 million—a net loss of $17.1 million.
