{"id":642124,"date":"2017-08-07T03:43:34","date_gmt":"2017-08-07T03:43:34","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/"},"modified":"2017-08-07T03:43:34","modified_gmt":"2017-08-07T03:43:34","slug":"food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/","title":{"rendered":"Food and beverages companies might stand to benefit most from coming of Investment Act"},"content":{"rendered":"<p><strong>Food and beverages companies might stand to benefit most from the coming of <\/strong><strong>Investment Act:<\/strong> In the current economic climate and with the coming of the Investment Act, the food and beverage sector will be of most interest to foreign investors, writes Matt Smith for <a href=\"https:\/\/www.salaamgateway.com\/en\/story\/egypt_new_investment_law_food_and_beverage_sector_will_be_of_most_interest_to_foreign_investors-SALAAM06082017034525\/\">Thomson Reuters\u2019 Islamic finance portal Salaam<\/a>. This comes despite <a href=\"https:\/\/enterprise.press\/stories\/2017\/08\/02\/listed-food-companies-have-seen-their-profits-take-a-hit-in-2q2017-on-the-back-of-high-inflation-interest-rate-hikes\/\">falling sales revenues from food companies such as Juhayna and Edita<\/a>. \u201cThe biggest issue is falling volume sales because the consumer has been hurt, but companies, in general, know this is short-term pain for a longer-term gain of a recovery in consumption power in Egypt,\u201d says Renaissance Capital analyst Mohamed Zein. Others, including CI Capital Asset Management\u2019s Noaman Khalid, think it is time to make a move on the sector: \u201cAsset prices are cheaper and you\u2019ll be established in the country to benefit as the first mover when there is a recovery in the wages of the population and consumption increases,\u201d he says.<\/p>\n<p><strong>Expect continued strong M&A activity in the sector:<\/strong> Current conditions might offer foreign investors an opportunity to acquire more established companies. \u201c<strong>It could be one of the best times for M&A<\/strong> because during periods of severe cost inflation some smaller players are forced to exit the market,\u201d says Zein. Furthermore, acquisition by other local companies was unlikely given that most food companies are family-run firms, according to Sigma Capital\u2019s Kamila Bolbol. The fragmented nature of the food sector is already making it appealing. Kellogg Company acquired Egyptian cereal company, Mass Food Group back in 2015, and the state-owned National Company for Maize Products has a <a href=\"https:\/\/enterprise.press\/stories\/2017\/07\/26\/adm-enters-the-fray-to-buy-ncmp\/\">host of private-sector suitors<\/a> right now.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Food and beverages companies might stand to benefit most from the coming of Investment Act: In the current economic climate and with the coming of the Investment Act, the food and beverage sector will be of most interest to foreign investors, writes Matt Smith for Thomson Reuters\u2019 Islamic finance portal Salaam. This comes despite falling [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-642124","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"d0cdc344-4864-45b2-af86-ad1a27909df5","order":"0","is_powered_by":true,"section_story_id":"74231e1e-8d7b-4cc4-bfd7-08b79f0a1157","story_type":"1","photo_url":"","photo_position":"above","related_issue":[642111],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Food and beverages companies might stand to benefit most from coming of Investment Act - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Food and beverages companies might stand to benefit most from coming of Investment Act\" \/>\n<meta property=\"og:description\" content=\"Food and beverages companies might stand to benefit most from the coming of Investment Act: In the current economic climate and with the coming of the Investment Act, the food and beverage sector will be of most interest to foreign investors, writes Matt Smith for Thomson Reuters\u2019 Islamic finance portal Salaam. This comes despite falling [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2017-08-07T03:43:34+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Food and beverages companies might stand to benefit most from coming of Investment Act\",\"datePublished\":\"2017-08-07T03:43:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/\"},\"wordCount\":286,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2017\/08\/07\/food-and-beverages-companies-might-stand-to-benefit-most-from-coming-of-investment-act\/\",\"name\":\"Food and beverages companies might stand to benefit most from coming of Investment Act - 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The Investment Ministry has finished drafting amendments to the executive regulations of the Companies Act and has forwarded a draft of the changes to the State Council for review. 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