The main goal of a personalized recommender system is to provide useful recommendations on various items to the users. In order to generate recommendations, the service needs to access various types of user data such as previous product purchasing history, demographic and biographical information. However, users are sensitive to disclosure of personal information as it can be easily misused by malicious third parties. Consequently, there are unavoidable security concerns which will become known through attempted unauthorized access while providing the recommendation services. In order to protect against breaches of personal information, it is necessary to obfuscate the user information by means of an efficient encryption technique while simultaneously generating the recommendation by making true information inaccessible to the system. To address these challenges, we propose a privacy-preserving recommender system using homomorphic encryption, by which the system can provide recommendations without knowing the actual ratings. Our approach is based on the ElGamal cryptosystem by which both addition and multiplication of plaintexts can be performed. The performance of the proposed scheme shows significantly high accuracy in-terms of computation and communication costs as well as outperforming other existing solutions.