{"id":645269,"date":"2017-07-17T03:49:24","date_gmt":"2017-07-17T03:49:24","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/"},"modified":"2017-07-17T03:49:24","modified_gmt":"2017-07-17T03:49:24","slug":"arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/","title":{"rendered":"Arafa Holding freezes investment plans on cost of capital concerns"},"content":{"rendered":"

<\/a> Arafa Holding has \u201cno plans to inject any new investments in Egypt\u201d in the coming period following the central bank\u2019s decision to raise interest rates<\/strong>, Chairman and CEO Alaa Arafa told Al Shorouk<\/a>. The cost of capital at the moment is not conducive to new investment, Arafa said, adding that no project can now be profitable given the mix of taxes, tariffs, and the high interest rate. The safest option now is to park funds in deposits, he added, stressing that the government needs to expand investment incentives if it wants to deliver on its economic goals. Arafa is the latest in a string of business leaders who have said they\u2019re holding back on new capex given the prevailing interest rates after successive rate hikes.<\/p>\n

More interest rate ripples as Naeem Holding will not extend subscriptions on its EGP 1 bn real estate fund for now because of the rate hike<\/strong>, the company said in a regulatory filing (pdf)<\/a>. The fund \u2014 the first of its kind in Egypt \u2014 is 1.3x oversubscribed, the company said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Arafa Holding has \u201cno plans to inject any new investments in Egypt\u201d in the coming period following the central bank\u2019s decision to raise interest rates, Chairman and CEO Alaa Arafa told Al Shorouk. The cost of capital at the moment is not conducive to new investment, Arafa said, adding that no project can now be […]<\/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-645269","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"502b6869-563d-484b-8719-d5cd71ef2f24","order":"0","is_powered_by":true,"section_story_id":"84ba537e-2cb1-4371-a1f7-5844d9f20398","story_type":"1","photo_url":"","photo_position":"above","related_issue":[645261],"teaser":"","voice_url":""},"yoast_head":"\nArafa Holding freezes investment plans on cost of capital concerns - 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\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Arafa Holding freezes investment plans on cost of capital concerns\" \/>\n<meta property=\"og:description\" content=\"Arafa Holding has \u201cno plans to inject any new investments in Egypt\u201d in the coming period following the central bank\u2019s decision to raise interest rates, Chairman and CEO Alaa Arafa told Al Shorouk. The cost of capital at the moment is not conducive to new investment, Arafa said, adding that no project can now be […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2017-07-17T03:49:24+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\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Arafa Holding freezes investment plans on cost of capital concerns\",\"datePublished\":\"2017-07-17T03:49:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/\"},\"wordCount\":185,\"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\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/17\/arafa-holding-freezes-investment-plans-on-cost-of-capital-concerns\/\",\"name\":\"Arafa Holding freezes investment plans on cost of capital concerns - 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Arafa held a 1.88% stake before the last sale. Arafa initially bought a 9.9% stake from CIB\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":649225,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/04\/26\/earnings-watch-arafa-holding\/","url_meta":{"origin":645269,"position":1},"title":"Earnings watch: Arafa Holding","author":"enterpriseam admin","date":"26 April 2017","format":false,"excerpt":"EARNINGS WATCH- Arafa Holding recorded a consolidated net profit of USD 7.8 mn in 2016, down from USD 12.45 mn in 2015, a 37% dip. 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PLUS: GCC alliance eyes 25% stake in City Lab Egypt","author":"enterpriseam admin","date":"25 March 2024","format":false,"excerpt":"The demerger saw Arafa rebrand as Concrete Fashion Group for Commercial and Industrial Investment and spin off subsidiary GTEX Holding","rel":"","context":"In "Also on our Radar"","block_context":{"text":"Also on our Radar","link":"https:\/\/enterpriseam.com\/egypt\/category\/also-on-our-radar\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/3\/2189.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":574679,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/09\/17\/arafa-holding-sinks-into-the-red-in-1h2020\/","url_meta":{"origin":645269,"position":4},"title":"Arafa Holding sinks into the red in 1H2020","author":"enterpriseam admin","date":"17 September 2020","format":false,"excerpt":"EARNINGS WATCH- Arafa Holding reported USD 10.7 mn in losses during 1H2020 down from net profits of USD 7.8 mn in 1H2019, according to an earnings release (pdf). 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