EFG Hermes Emerging Markets conference kicks off in Dubai

EFG Hermes, a leading financial services corporation in Frontier Emerging Markets (FEM), kicked off its 15th annual One on One Conference today in Dubai under the patronage of HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the Deputy Ruler of Dubai.

With many changes taking place in the global investment landscape, the 2019 conference is headlined as “Navigating the Path to Opportunities.”

This year’s event will see executives from 186 companies from 26 countries meet directly with more than 520 investors representing 260 institutions and family offices, managing an aggregate USD 11 trillion in assets under management.

“Our 15th One on One Conference is expected to feature our largest and most diverse group of participants yet, driven by the firm’s rapid expansion into frontier emerging markets across four continents. The number of participating companies is up this year, with Saudi Arabia and Nigeria in particular increasing their representation at a time when both markets are experiencing important changes that will generate new opportunities,” stated Karim Awad, Group CEO of EFG Hermes.

Saudi Arabia’s inclusion in the MSCI and FTSE emerging market indices is expected to drive inflows through 2020 while volatility and expected medium-term decline in oil prices are creating powerful incentives for the Kingdom and other GCC markets to enact regulatory change and fiscal reforms that will drive consolidation and strengthen non-oil industries.

Meanwhile, Nigeria is facing several headwinds in terms of macro and equity performance, but visibility remains strong on 2019 earnings growth and yields continue to be attractive.

“Since its inception, we have sought to make this event a direct access platform for global investors and companies in the world’s most compelling markets. Even in the face of macroeconomic challenges such as significant capital outflows from emerging markets and rising US interest rates, frontier emerging markets represent the greatest potential for driving growth and generating accretive returns. With thousands of direct meetings taking place between investors and presenting companies, we hope to provide attendees with insights on how to navigate these rougher global waters to unlock new value,” Awad added.

Commenting on the macro-economic context of this year’s conference, Co-CEO of the Investment Bank at EFG Hermes Mohamed Ebeid said, “The overall outlook for frontier markets in 2019 is mixed, with macro-level factors such as the moderation of China’s commodities demand, the weakening of the yuan, ongoing tensions between China and the US, and the US Federal Reserve’s current fiscal tightening cycle creating significant challenges across regions. At the same time, opportunities are arising in countries such as Ethiopia and Rwanda, which are expected to be among the top 10 markets for growth in 2019 thanks to innovative power generation and infrastructure projects. Kenya is making the reforms necessary to boost growth while Pakistan’s attractive valuation and history of good long-term returns make it an appealing venue for investment despite the current period of high inflation and stock market volatility. Moreover, Ethiopia has appointed a commission to explore opening up a stock exchange and all the needed regulatory frameworks and structures.”

“This year’s conference features a strong line of speakers from innovative global companies who will offer fresh perspectives on expected trends in FEM. Providing attendees with first-hand insights from key international players is a crucial part of our effort to organize conferences that spur investments in our markets and drive growth,” Ebeid added.

In one panel session, CEO of EFG Hermes’ Non-Banking Finance Institution Walid Hassouna, CEO of ASA International PLC Dirk Brouwer and Khalid El Gibali, Division President for Middle East and North Africa at MasterCard will discuss the ways that non-banking financial institutions are opening up markets and whether they pose a threat to traditional banking institutions.

Another session on the strategies companies are employing to attract and retain customers in an increasingly challenging macroeconomic environment will feature the following panelists:

- Mahmoud El Meligy, Chief Operating Officer Dubai Refreshment, Pepsi Co Bottler and Distributor

- Sacha Poignonnec, Co-Chief Executive Officer & Co-Founder, Jumia

- Nada Amin, Vice President Consumer and Retail, EFG Hermes

Since inception, the One on One Conference has served as a crucial venue for connecting global investors with opportunities in the Middle East and North Africa. On the first day of this year’s conference, attendees will also vote in the EFG Hermes Consensus, the largest (and only live) poll of FEM market investors and executives that provides key insights into trends and expectations for global markets in the near and medium term.