Egyptian Businessman Medhat Khalil’s Raya Surpasses $650 Million in Revenue for 2023

Raya Holding for Financial Investments (Raya), led by Egyptian entrepreneur Medhat Khalil, reported strong financial results at the conclusion of its fiscal year 2023, with revenue exceeding $650 million, cementing Raya’s position as one of Egypt’s most resilient groups.

The company’s recently filed financial results show a considerable revenue increase of 53.31 percent, from EGP20.41 billion ($429.22 million) in 2022 to EGP31.29 billion ($650 million) in 2023. This is due, in part, to an increase in foreign currency-denominated revenues, which currently make about 24% of Raya’s entire revenue stream.

Raya’s trade and distribution arm emerged as the key revenue driver, accounting for 44 percent of the company’s overall performance. The IT sector was close behind at 22 percent, with Fintech and Non-Bank Financial Services (NBFS) accounting for 15 percent.

Raya Holdings’ consolidated net profit also increased significantly, rising 34.5 percent from EGP419.23 million ($8.82 million) in 2022 to EGP563.88 million ($11.86 million) in 2023.

This significant profit spike demonstrates the company’s endurance and strategic acumen in the face of macroeconomic headwinds such as rising interest rates, inflationary pressures, and geopolitical concerns.

In response to the company’s performance, Raya Holding focused on strategic measures aimed at optimizing revenue streams in foreign currencies, extending its export footprint, and increasing revenue contributions from its abroad subsidiaries.

Raya Holding was founded in 1999 through the combination of firms controlled by Medhat Khalil and the Orascom Group, and it has since grown to become Egypt’s biggest brand. Khalil currently owns a controlling share of 58.1 percent in the company, cementing his status as one of Egypt’s leading corporate heavyweights and a big investor in the Egyptian Exchange.

Despite obstacles resulting from the Egyptian pound’s devaluation, Raya Holdings has exhibited tenacity, overcoming economic headwinds with agility. The company’s ability to adapt to the Central Bank’s market-oriented exchange rate system and capitalize on interest rate modifications demonstrates its ability to prosper in adverse situations.

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