Too soon to panic? EFG Holding Group CEO urges calm over US tariffs
Speaking at the 19th EFG Hermes One-on-One Investor Conference in Dubai, Awad said global investor sentiment had been shaken by rising uncertainty
Gulf countries have less reason to panic over the impact of US President Donald Trump’s new tariffs, says Karim Awad, group CEO of financial institution EFG Holding.
Speaking to Gulf Business at the 19th EFG Hermes One-on-One Investor Conference in Dubai, Awad said investor sentiment had been shaken by rising uncertainty.
Global markets reacted sharply on Monday to Trump’s newly announced reciprocal tariff regime, with Hong Kong’s Hang Seng posting its worst fall since 1997 and more than $6tn wiped off US markets over the past three trading days. In the GCC, Saudi Arabia’s Tadawul dropped 7 per cent on Sunday: its steepest decline in five years.
Trump’s “universal baseline tariff” initiates a flat 10 per cent import tax on all goods entering the US, with steeper rates for select countries such as China, where tariffs have been set at 34 per cent.
“The thing that investors like the least is uncertainty,” said Awad.
“It is not only that the tariff regime is tough. It is also that no one is really sure where it will stop. And whether this has ended or whether it will escalate, whether it will de-escalate, no one is really 100 per cent sure.”
By contrast, GCC countries are currently facing only the baseline 10 per cent tariff, a fact Awad believes is being overlooked.
“Having said that, I am not sure that the impact on the Gulf markets, with the exception of course of the movement in oil prices, warrants all that amount of panic, especially that the amount of tariffs that has been slapped on the Arab world is not, to be honest, that big,” he added.
“Naturally there is worry about oil prices and the impact on oil prices, which is a legitimate worry. At the end of the day, it takes time for people to digest, it takes time for companies to adjust to the impact of these changes. And we’ll see where it goes from here.”
Awad also commented on the outlook for Egypt, where EFG Holding is headquartered, noting that the recent float of the pound had helped restore investor confidence.
“The one positive that I saw yesterday, and that I’m actually quite impressed about, is that it was a clear example that the currency regime in Egypt is flexible and that it moves,” he said.
“There is very little intervention from the Central Bank of Egypt, if any. And this should give investors also a lot of confidence that the country is moving in the right direction.”
EFG Holding remains upbeat
Despite the market ructions, EFG Holding remains optimistic.
Founded more than 40 years ago, the group is a financial powerhouse with operations in seven countries across MENA. Its investment banking arm, EFG Hermes, is widely regarded as the region’s leading player, offering services across advisory, asset management, brokerage, research, and private equity.
In 2024, the group posted record revenues of around $545m, up 66 per cent year-on-year. Net profit after tax and minority interest surged 71 per cent to $105.3m. Total assets reached EGP186.9bn by year-end. The firm has also topped equity capital markets (ECM) league tables in the region.
EFG Hermes is working on seven initial public offerings (IPOs) across the GCC in 2025 worth up to $10bn, including five in Saudi Arabia, according to Mostafa Gad, global head of investment banking at EFG Hermes. The firm is also advising on around 10 M&A deals worth between $6bn and $8bn this year, he told Asharq News.
Heading into 2025, the IPO pipeline remains “extremely healthy”, Awad said, with strong demand expected from global investors seeking exposure to one of the world’s most dynamic regions.
Dubai plays host to EFG Hermes’ flagship investor event
This week, EFG Hermes is hosting its flagship One-on-One Investor Conference in Dubai, now in its 19th edition. The event, widely seen as one of MENA’s most influential investment gatherings, is being held at the JW Marriott Hotel Marina and brings together 220 companies from 12 countries and 675 institutional investors from 252 global firms.
“We are delighted to welcome all our conference participants and invite them to enjoy the vibrant exchange of ideas and engage in the thought-provoking discussions in our interactive meeting spaces,” Awad said.
