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EgyptUAE’s Agthia Increases Stake in Egypt’s Abu Auf to 80%, Strengthening MENA Expansion
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Agthia increased its ownership of Abu Auf from 70% to 80% after acquiring an additional 10% stake.
Abu Auf’s revenue surged 33% in 2024, with EBITDA rising by 70% and over 100 new stores opened.
Agthia’s exports from Egypt grew by 50% in the first half of 2024, increasing Egypt’s contribution to the group’s revenue from 15-16% to 20%.
The acquisition reflects Agthia’s confidence in Abu Auf’s growth potential and innovation.
UAE companies have been ramping up investments in Egypt’s food and beverage sector, with several high-profile acquisitions.
UAE-based Agthia Group has expanded its stake in Egyptian snack and coffee company Abu Auf, increasing its ownership to 80% after acquiring an additional 10% stake. This follows its initial acquisition of a 60% stake in 2022, valued at EGP 2.92 billion, and a subsequent 10% increase in February 2024.
Alan Smith, CEO of Agthia Group, emphasized the strategic importance of this investment, stating:
"This additional investment reflects our belief in the company’s potential and our commitment to bringing their innovative products to more consumers across Egypt and beyond."
Abu Auf, known for its premium coffee, nuts, dates, and snacks, has experienced rapid growth. In 2024, the company recorded a 33% year-on-year revenue increase, despite the Egyptian pound’s 60% devaluation against the dollar. Over the past two years, Abu Auf has opened more than 100 new stores and increased its EBITDA by over 70%.
Agthia has also seen strong performance in its Egyptian operations. Exports from Egypt surged by 50% in the first half of 2024, with Egypt’s contribution to the group’s total earnings rising from 15-16% to 20%.
Ahmed Auf, CEO of Abu Auf Group, highlighted the company’s ongoing growth under Agthia’s ownership, stating:
"With Agthia’s scale and expertise, Abu Auf has accelerated on the growth journey and remains firmly committed to continued innovation and expansion."
Agthia’s Growing Regional Footprint
Founded in 2004, Agthia is a leading food and beverage company headquartered in Abu Dhabi, with a majority of its shares owned by a government entity. The company has an extensive regional presence, with assets in the UAE, Saudi Arabia, Kuwait, Oman, Turkey, Jordan, and Egypt. Over the years, Agthia has pursued aggressive expansion through acquisitions, including:
- Al Ain Water (a leading bottled water brand)
- BMB Group (a GCC-based snack company)
- Atyab Egypt (a frozen food manufacturer acquired for EGP 3.2 billion)
- Kuwait’s Al Faisal Bakery and Sweets
- Jordan’s Nabil Foods.
UAE’s Expanding Investments in Egypt’s Food Sector
The UAE’s interest in Egypt’s food and beverage industry has intensified, with several Emirati companies acquiring local brands to strengthen their market presence.
In September 2024, UAE-based Hayel Saeed Anam Group (HSA) acquired a majority stake in Egypt’s biscuit company Bisco Misr, as part of its expansion strategy. Meanwhile, Agthia itself acquired a 75% stake in Ismailia Agricultural and Industrial Investments, the company behind the well-known frozen meat and poultry brand Atyab.
Despite Egypt’s economic challenges, including significant currency devaluation, UAE companies continue to see strong growth potential in the country’s food sector. Agthia’s latest investment in Abu Auf signals its long-term commitment to the Egyptian market, positioning it as a key player in the region’s evolving food industry.
