AUC’s Board of Trustees has elected its newest member: Ahmed Galal Ismail ’97, chief executive officer and member of the Board of Directors at Majid Al Futtaim Holding, the leading shopping mall, retail and leisure pioneer across the Middle East, Africa and Asia, with assets in excess of $18 billion and 44,000 employees.

Holding an MBA with distinction from the London Business School and a Bachelor of Science in computer science with high honors from AUC, Ismail is happy to serve his alma mater. 

“I’m delighted to be invited to join the AUC Board of Trustees and for the opportunity to contribute to broadening AUC’s impact across the Arab world,” Ismail said.

A business trailblazer, Ismail held several executive positions across Majid Al Futtaim’s portfolio of businesses during his 16-year tenure, playing an instrumental role in the company’s growth and development. Having joined in 2007 as the group's vice president of strategy, Ismail quickly rose through the ranks, becoming CEO of Majid Al Futtaim Ventures from 2009 to 2018, overseeing seven business niches such as leisure and entertainment, cinema, lifestyle, facilities management and consumer finance. From 2018 to 2023, he was CEO of Majid Al Futtaim Properties, managing the company’s wide range of shopping malls, hotels and mixed-use communities across the United Arab Emirates, Egypt, Oman, Bahrain and Lebanon. Prior to Al-Futtaim, Ismail worked with Procter and Gamble in Egypt and Germany in addition to serving as principal of Booz Allen Hamilton, where he advised organizations in the retail, media, tourism and transportation sectors.

"My fellow trustees and I are excited to welcome Ahmed Galal Ismail to our Board,” said Mark Turnage (ALU ’82), chair of AUC’s Board of Trustees. “As an AUC graduate, Ahmed has been a tireless advocate for the University, and he brings a wealth of experience, knowledge and leadership that will support AUC’s impact at this critical moment.”

Ismail serves on the boards of the Arab Investment Bank and Endeavor United Arab Emirates, a global nonprofit dedicated to high-impact entrepreneurship. He is also a member of the World Economic Forum’s Alliance of CEO Climate Leaders.  

The Egyptian economy has faced many challenges in recent years, including a two-time devaluation of the Egyptian pound, soaring inflation and a foreign-exchange crunch, which has resulted in restrictions on credit usage in foreign currencies. 

What does the economic landscape look like in Egypt right now, and what can we expect moving forward? We spoke with Ahmed Abou-Zaid, professor of economics at AUC, to learn more.

The Central Bank of Egypt has recently banned the use of debit cards abroad and restricted credit usage for transactions in foreign currencies.  Why has it taken such steps?

Central banks across the world adopt various targets and objectives, ranging from price stability and high employment to fostering economic growth. In the case of the Central Bank of Egypt, its current primary focus is maintaining stability in the foreign exchange market. Recent decisions made by the CBE, such as banning the use of debit cards for foreign currencies, serve as a reflection of the foreign currency shortages Egypt is currently suffering from. The Central Bank aims to stabilize the market by retaining a significant portion of foreign currency within the country's borders. Recently, there have been reports of individuals being sent to foreign countries with numerous debit cards to withdraw dollars from their Egyptian pounds’ accounts. This practice has resulted in a substantial decline in Egypt's foreign reserves, worsening the existing problems.

What does this signify?

Egypt's focus on foreign exchange market stability, while confronting foreign currency shortages and inventive practices to access foreign currency, underscores the importance of prudent Central Bank policies to safeguard the country's economic well-being. These measures are pivotal in addressing the challenges posed by capital flight and depletion of foreign reserves.

Do you expect another devaluation? If so, approximately when?

Given the current state of Egypt's foreign reserves, it's evident that the price of the U.S. dollar in the black market has surpassed EGP 42, which represents a considerable premium of approximately 10 pounds over the official exchange rate. Given these conditions and in the context of Egypt's agreement with the International Monetary Fund, there is a strong likelihood of another devaluation occurring by January 2024. This impending devaluation should be seen in the broader context of Egypt's economic challenges and its commitment to agreements with international financial institutions like the IMF.

How do you foresee people's cost of living and general expenses being affected amidst the current economic conditions? 

Two recent currency devaluations, sluggish wage growth, limited economic subsidies and a rapid population growth, have contributed significantly to a notable decline in the living standards of the Egyptian population. The elevated value of the U.S. dollar has played a major role in raising the cost of imported goods, the majority of which encompass essential products, such as food and medicine, as well as crucial inputs for manufacturing and agriculture.

Should we expect inflation to rise?

Official data published by the Central Bank underscores a consistent upward trend in inflation over the past two years, averaging at around 40%. With another devaluation on the horizon, it's a straightforward projection that prices will continue to surge, given that foreign components or inputs are integral to nearly every product in Egypt.

What do you foresee for the Egyptian economy through the end of this year? Into next year? In the long term?

Forecasting the trajectory of Egypt's economy is an easy task as it depends on multiple factors. In the short term, the foremost concerns include persistent inflation and depreciation of the Egyptian pound, posing significant challenges that will lead to higher prices and lower standards of living. 

Looking ahead to the mid and long term, Egypt's economic prospects can be enhanced through the implementation of a range of policies, such as attracting foreign investments, managing population growth, advancing infrastructure projects and adopting sustainable practices. By strategically employing these measures, Egypt can chart a path toward economic improvement and sustainability in the coming years.

What advice would you give to people living in Egypt to cope with these challenging conditions?

A very difficult question, but what I can think of is “work hard and budget wisely”.