Ahmed Ezz's Ezz Steel Stake Loses 280 Million From Currency Devaluation

While Egyptian businessmen like Hisham Talaat Moustafa and the billionaire brothers Ahmed and Sadek Elsewedy recorded impressive gains in 2024, the story is markedly different for steel tycoon Ahmed Ezz. Despite an increase in the share price of his company, Ezz Steel, the founder and majority stakeholder, has seen his fortune take a significant hit due to the devaluation of the Egyptian pound.

Ezz, who controls 66.4 percent of the Cairo-based steel giantequivalent to 360,727,978 shareshas suffered a loss of 280.85 million in his stake since the start of the year. This sharp decline, driven by the Egyptian pounds slide against the U.S. dollar, has eclipsed the nominal gains in local currency terms, highlighting the broader economic challenges facing Egypt's business leaders.

Ezz Steel dominates the MENA steel market with state-of-the-art facilities capable of producing 7 million tons annually, including over 5 million metric tons of high-quality steel for regional and global markets. This scale positions Ezz Steel ahead of competitors such as Saudi Arabias Hadeed and Emirates Steel, cementing its leadership in the industry.

Despite its operational dominance, the company faces financial challenges stemming from Egypt's economic volatility. While its market capitalization exceeds 1.1 billion, the companys share price has risen 18.21 percent year-to-date in Egyptian poundsfrom EGP90.76 to EGP107.29currency devaluation has eroded these gains. The dollar equivalent of the share price has dropped from 2.96 to 2.15, significantly shrinking the dollar value of shareholders holdings, including those of Ahmed Ezz.

As a result, Ezzs personal stake has fallen by 280.85 million, declining from 1.06 billion at the start of 2024 to 776.97 million, reflecting a 26.55 percent drop. Ahmed Ezz remains a key figure in Egypts industrial sector, with Ezz Steel maintaining its dominance as the regions largest steel producer. However, the currency volatility underscores the complexities of navigating Egypts turbulent economic landscape, despite the companys operational strengths.