Egypt’s Financial Regulatory Authority greenlights GIG’s acquisition of AIG

Malak Mostafa, Sunday 2 Apr 2023

Egypt's Financial Regulatory Authority (FRA) approved the Kuwaiti Gulf Insurance Group's (GIG) subsidiary GIG Egypt's acquisition of AIG Egypt for EGP196.97 million ($6.41 million), according to a statement released by the FRA on Sunday.

Egypt s Financial Regulatory Authority (FRA) headquarters. Photo: Al-Ahram


AIG Egypt operates under the American International Group (AIG) umbrella.

The pending offer has set the share price at EGP 164.14, with a minimum execution rate of 75 percent of the capital shares. GIG Egypt intends to acquire 100% a total of 1.2 million shares.

As the largest insurer in Kuwait, GIG has a strong presence in multiple Gulf countries and Egypt. The acquisition is expected to contribute to the growth of the insurance industry in Egypt, a key sector of the country's economy.

This acquisition comes at a time when Egypt faces a significant financing gap of $17 billion through FY2025/2026, according to estimates by the International Monetary Fund (IMF). To bridge this gap, Egypt is seeking loans from international and regional partners, as well as selling off state-owned assets.

In line with this, Egypt has issued the State Ownership Policy, which aims to increase the private sector's role in the country's economic activity, raising its share from the current 30 percent to 65 percent. The policy is expected to create more opportunities for private investment and contribute to the country's economic growth.

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