Egyptian billionaire Yasseen Mansour, chairman of major real estate developer Palm Hills Development, has seen his wealth drop as the Egyptian pound has devalued.
Since March 6, Mansour’s Palm Hills stake has decreased by $12.3 million. This decline follows the Central Bank of Egypt’s (CBE) decision to create a more market-driven exchange rate regime, resulting in the Egyptian pound’s depreciation.
Palm Hills, a Mansour Group affiliate, is a notable Egyptian developer that specializes in integrated residential, commercial, and resort complexes. Yasseen Mansour, one of Egypt and Africa’s wealthiest persons, owns a huge 6.87 percent stake in Palm Hills, equivalent to around 202 million ordinary shares.
The CBE’s transition to a market-determined exchange rate is intended to address the country’s serious foreign currency shortfall. To address this issue, the bank increased interest rates by 600 basis points, to 27.25 percent.
This devaluation, together with the loss in Palm Hills’ share price on the Egyptian Exchange, has resulted in a considerable reduction in the value of Mansour’s investment. It is down from a projected $28.15 million to $15.83 million.
Despite this setback, Mansour remains a major figure in Africa’s economic community. Forbes estimates his current net worth at $1.2 billion, placing him as the world’s 2,329th richest person.
According to Xe.com, the pound has depreciated by 35.36 percent year-to-date and is currently trading at a record low of 47.8 against the US dollar.