Egypt’s Richest Individual Boosts Wealth Amid Strategic Divestments at OCI

Nassef Sawiris, Egypt’s richest man, has seen his fortune grow by $912 million in 2024 Under his leadership, OCI, the global chemical and fertilizer company, has undergone significant changes, becoming more agile and focused on strategic growth initiatives.

In 2024, OCI’s shares have risen by around 8%, giving the company a market value of €6 billion. Meanwhile, Methanex, a company publicly traded in Toronto and on Nasdaq, experienced a 10% drop in stock value, reducing its market capitalization to approximately $3 billion. Sawiris has been instrumental in OCI’s asset divestment strategy, which has generated $11.6 billion through various sales.

The most recent transaction occurred in September 2024, when OCI agreed to sell its global methanol business to Methanex for approximately $2 billion. The deal consists of $1.15 billion in cash, with the remainder paid in Methanex shares, making OCI the second-largest shareholder in Methanex, holding a 13% stake. This marks the fourth significant sale for OCI as part of a broader corporate restructuring plan that began in 2023.

Previous major divestments included two fertilizer businesses sold to Adnoc and Koch Industries for $3.6 billion each, as well as a low-carbon ammonia project in Texas sold to Woodside Energy for $2.35 billion. Despite these sales, OCI retains its European assets and continues to be a leader in producing green methanol, a key alternative fuel for road and marine transport.

The divestment strategy, backed by activist investor Jeff Ubben, who holds a 5% stake in OCI, aims to increase shareholder returns and streamline the company’s operations. Proceeds from the sales are being directed towards debt reduction and shareholder distributions. In 2024, OCI plans to return at least $3 billion to its investors as part of its enhanced capital allocation framework. Sawiris has also suggested that OCI may evolve into a cash-shell company, exploring acquisitions in emerging sectors.

Beyond OCI, Sawiris’ wealth and influence extend across various industries. He holds a stake in the English football club Aston Villa and has investments in sectors such as construction, sports, and materials. His personal wealth growth, coupled with OCI’s strategic transformation, solidifies his position as a major player in the global business landscape.

Born on January 19, 1961, in Cairo, Egypt, Nassef Sawiris is the youngest son of Yousiriyya and Onsi Sawiris, the founder of the Sawiris family’s business empire, Orascom Construction. After the Egyptian government nationalized his father’s company in 1961, the family relocated to Libya for a time before returning to Egypt. Sawiris later attended high school at the German International School in Cairo and earned a degree in economics from the University of Chicago in 1982.

Sawiris joined Orascom Construction Industries (OCI), which had become one of Egypt’s largest private construction firms by the mid-1990s. He assumed the role of CEO in 1998, taking over leadership from his father. Under his guidance, the company expanded internationally and diversified into new sectors, including cement and building materials. In 2008, Sawiris oversaw the sale of OCI’s cement division to French multinational Lafarge for $12.8 billion, one of the largest deals in the construction industry.

After selling the cement business, Sawiris shifted OCI’s focus to the fertilizer sector. Through acquisitions and growth, OCI became a leading producer of nitrogen-based fertilizers. In 2013, Sawiris moved OCI’s listing from the Cairo Stock Exchange to NYSE Euronext Amsterdam, reducing exposure to Egyptian market risks and lowering borrowing costs. In 2015, OCI spun off its construction business, listing it separately on the Dubai and Cairo stock exchanges, positioning the company for future expansion.

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