Naguib Sawiris, Chairman of Orascom Investment Holding made known that he sees several opportunities in Airlines, tourism, and the internet sector. Sawiris stated that with every hovering crisis, there is an opportunity.
Presuming the bulk of the debt, one can buy a plane today for $1. In the same breath, he forecasted that oil may begin to sell for $100 per barrel in a year 6 months’ time.
Also, he disclosed that he would purchase airlines, going against Warren Buffet, a billionaire American investor who announced that Berkshire Hathaway on 2 May, sold out all its $6 billion worth of airlines stocks at the firm’s yearly meeting, after losing as much as $49.7 billion in the first quarter of 2020 alone.
As a result of the shocking outbreak of pandemic disease, global travel has been negatively impacted. United States airline stocks have fluctuateds a result of low demand or complete stop on demand for it.
The value has dropped by a staggering 95% as a result of the pandemic. The Egyptian Billionaire made known that he agrees with Donald Trump to reopen the economy.
It’s imperative to note that the reopening of America’s economy has been controversial. U.S stock plunged on Tuesday because expectations were up that the economy may swing open soon.
According to Sawiris, America may not find the cure and vaccine to the pandemic disease anytime soon, indefinite lockdown is not an option and this is one of the few times Donald Trump would be right. He stated.
Going further, he made known that the price war between Saudi Arabia and Russia is calculated and seeking to cripple the United States Shale industry.
OPEC in March failed to reach a deal to reduce the production of crude oil with other major producers. Subsequently, in April, an agreement was reached to cut 9.7 million barrels of crude oil which turned out to be the highest output cut in history.
Sawiris stated that while the jump in price remains inevitable as a result of low demand, it would have been better if OPEC had reached a deal with other major producers.
On Tuesday 5 May, Oil plunged 20% as economies slowly begin to swing back open.
