Table of Contents
Key Points
- Ahmed Ezz’s stake in Ezz Steel has dropped $280.85 million due to the Egyptian pound’s devaluation, despite the company’s share price rise in local currency terms.
- Ezz Steel, the MENA steel leader, faces financial challenges, with its share price falling 27% in U.S. dollars, despite an 18.21% increase in Egyptian pounds.
- Investors in Ezz Steel have lost 26.55% year-to-date in dollar terms, with a $100,000 investment now worth just $73,450.
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 giant—equivalent to 360,727,978 shares—has suffered a loss of $280.85 million in his stake since the start of the year. This sharp decline, driven by the Egyptian pound’s 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 leads MENA steel market
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 Arabia’s 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 company’s share price has risen 18.21 percent year-to-date in Egyptian pounds—from EGP90.76 to EGP107.29—currency 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, Ezz’s 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 Egypt’s industrial sector, with Ezz Steel maintaining its dominance as the region’s largest steel producer. However, the currency volatility underscores the complexities of navigating Egypt’s turbulent economic landscape, despite the company’s operational strengths.
Your Money and Your Life
While Ezz Steel has posted year-to-date gains of 18.21 percent in Egyptian pound terms, the reality is starker after accounting for currency depreciation, with the gains turning to year-to-date losses which widened to 26.55 percent.
Investors who bought Ezz Steel’s shares at the beginning of 2024 are now facing losses, with a $100,000 investment worth only $73,450.
