Saudi Arabia’s PIF to Invest $5 Billion In Egypt

H R H Crown Prince and Prime Minister of Saudi Arabia Mohammed bin Salman on Monday directed the Kingdom’s sovereign wealth fund – Public Investment Fund (PIF) – to facilitate $5 billion in Egypt as part of the “first phase” of a larger program of investment.

The Crown Prince, who held a meeting with Egyptian Prime Minister Dr Moustafa Madbouly last evening, informed him about the decision. However, no further details were disclosed about the planned investments.

Egypt’s Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib for talks with their Saudi counterparts aimed at strengthening trade and investment between the two countries.

Saudi Arabia is the second-largest contributing country to Egypt’s long-term deposits, making up $5.3 billion of the $14.9 billion long-term deposits currently sitting at the Central Bank of Egypt at the end of 2023.

This is not the first investment from PIF in Egypt as the Fund became CIRA Education’s majority shareholder in May this by acquiring up to 100% of the company. PIF was also in discussions to buy a minority stake in Egypt’s agriculture firm Daltex.

The PIF, through its Saudi Egyptian Investment Company, invested more than $1.3 billion after acquiring stakes in listed companies in Egypt and they include 25% in Mopco, around 20% shares in Abu Qir Fertilizers, a 27% stake in E-finance, and a 20% stake in Alexandria Container and Cargo Handling.

During the meeting the Egyptian Prime Minister lauded the progress made by the Kingdom in various sectors by implementing Vision 2030. He also explained that the Egyptian government has succeeded in resolving most of the problems faced by Saudi investors in Egypt and the rest would be dealt with in the near future.

In this context, Dr. Mustafa Madbouli praised the existing cooperation between the Egyptian government and the Saudi Aqua Power Company as a major producer of new and renewable energy and water solution at the lowest cost.

In his comments, the Saudi Crown Prince said that he will visit Egypt soon to meet Egyptian President Abdel Fattah El-Sisi.

He also stressed the importance of electrical connectivity between Egypt and the kingdom, expressing his eagerness to provide more necessary facilities to enterprises working in the field of new and renewable energy in Egypt.

According to the Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS), Saudi private-sector investments in Egypt exceed $35 billion across 7,000 companies.

The trade between the two countries stood at $7.9 billion, with $2.7 billion in Egyptian exports to Saudi Arabia and $5.2 billion in Saudi exports to Egypt, according to the Egyptian-Saudi Business Council. Egyptian investments in Saudi Arabia total $2.5 billion.

Other GCC Investments

Even the UAE sovereign wealth fund ADQ has announced that it will be investing $35 billion in February this year to develop Ras El Hekma on the north coast. This deal included $11 billion of UAE central bank deposits converted to local currency for investment.