Egypt News

The firm owns 28 percent of Bank Audi (AUDI.BY), Lebanon's largest commercial bank, and would like to increase its stake to more than 50 percent, "but this is a long term process," said Sherif Cararah, EFG-Hermes Securities Brokerage Managing Director.

Cararah said EFG-Hermes has a strong investment bank presence in the region and does not need to strengthen its position in this area.

"Acquisitions in the commercial banking arena, yes. In the investment banking, no. We have been on top of this market for a long time, we don't have any competitor that makes sense to be acquired by us," Cararah told reporters on the sidelines of EFG-Hermes & Auerbach Grayson investor conference in New York.

EFG-Hermes is also looking at acquiring licences of brokerages in Syria and Libya, but will stay away from African markets as these are still small.

"We have a lot to do in the Gulf market before going to Africa," he said.

Cararah said infrastructure projects will drive growth in the Middle East and North Africa over the coming years as these regions are highly correlated with oil prices, which have been rising once again.

He expects one or two initial public stock offerings in early 2010 after a drought due to the global financial crisis. A good place to start fund-raising would be in Saudi Arabia, yet margins for brokerages remain low there.

EFG-Hermes manages $4.35 billion invested in stocks and $1 billion in private equity, down from a peak of $8 billion, yet it is the biggest dedicated fund to the region.

EGYPT NEWS

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