UAE’s Agthia Expands Its Stake in Egypt’s Abu Auf to 80%

Agthia Group, based in the UAE, has increased its ownership stake in Abu Auf to 80% by acquiring an additional 10% of the Egyptian snack and coffee company. This follows their initial acquisition of 60% in 2022 and an additional 10% in early 2024. The investment underscores Agthia's confidence in Abu Auf's market potential and their commitment to enhancing the company's reach across Egypt and beyond.

Significance of the Acquisition: The transaction aligns with Agthia's strategic goals for expansion in the MENA region, particularly in Egypt, despite the significant devaluation of the Egyptian pound. In 2024, Abu Auf reported a 33% increase in revenue measured in AED, demonstrating robust growth in spite of economic fluctuations. Additionally, the company has opened over 100 new stores and seen a substantial 70% rise in EBITDA.

Growth and Exports: In a recent interview, Agthia's CEO Alan Smith highlighted that Agthia’s exports from Egypt had surged by 50% in the first half of 2024, and the revenue contribution from Egypt to the group’s total earnings had increased from the typical 15%-16% to 20%. This reflects Egypt's growing importance in Agthia's overall business strategy.

Company Profiles and Regional Presence:

Abu Auf: Established in 2010, Abu Auf specializes in producing and retailing premium coffee, nuts, dates, and snacks.
Agthia: Founded in 2004 and majority-owned by an Abu Dhabi government entity, Agthia is a significant player in the food and beverage industry with assets across several countries including the UAE, Saudi Arabia, Kuwait, Oman, Turkey, Jordan, and Egypt. Agthia's expansion strategy has included acquisitions such as Al Ain Water, GCC’s BMB Group, Egypt’s Atyab, Kuwait’s Al Faisal Bakery and Sweets, and Jordan’s Nabil Foods.
Expansion of UAE Firms in Egypt: The UAE’s investment in Egypt’s food and beverage sector has been on the rise, with several significant acquisitions in recent years. Notably, the Hayel Saeed Anam Group (HSA) acquired a majority stake in Egypt’s Bisco Misr in September 2024, and Agthia Group itself took a 75% stake in Ismailia Agricultural and Industrial Investments, known for its “Atyab” brand of frozen foods, in a deal valued at about EGP 3.2 billion.

These movements illustrate the UAE's active role in enhancing its footprint in Egypt, leveraging local brands like Abu Auf to scale operations, innovate further, and meet the growing demand for quality food products in the region.