Dubai: Saudi Arabia's Public Investment Fund (PIF) is set to invest $5 billion (Dh18.3 billion) in Egypt as part of an initial phase of funding.
This decision was announced by Crown Prince Mohammed Bin Salman (MBS) following a meeting with Egyptian Prime Minister Mostafa Madbouly, according to a statement from the Egyptian cabinet.
In August, Saudi Investment Minister Khalid Al Falih indicated that the country plans to convert its $10 billion (Dh36.7 billion) deposit with the Central Bank of Egypt (CBE) into investments.
In August 2022, the Saudi Egyptian Investment Company (SEIC), a PIF subsidiary, acquired minority stakes in four Egyptian state-owned enterprises, including E-Finance, for $1.3 billion (Dh4.7 billion).
Saudi Arabia’s investments in Egypt reflects the growing interests of the country’s international investments.
The move will facilitate partnerships in industrial and agricultural production between the Egyptian and Saudi private sectors, since Saudi Arabia is investing in its favoured sectors such as clean energy, electricity, real estate, and more.
As of December 31, 2023, Riyadh’s long-term deposits with the CBE were reported to be $5.3 billion (Dh19.4 billion), according to Reuters.
Egypt’s new cabinet, which was established in July, aims to triple foreign direct investment (FDI) from the record $10 billion (Dh36.7 billion) achieved in 2022 to 2023.
The government has set a target of $30 billion (Dh110 billion) in FDI for the current financial year, which began on July 1, as it seeks to cut budgets and reduce state spending.
