RIYADH: Saudi Arabia's sovereign wealth fund is set to significantly increase financing in Egypt, with plans to convert deposits into direct investment, following a key meeting between officials from both countries.
The discussions, held in New Alamein, Egypt, focused on strengthening economic ties and expanding joint investment projects.
During his two-day visit, Saudi Arabian Minister of Investment Khalid Al-Falih reiterated his commitment to strengthening trade ties with Egypt.
“We have ordered to increase the investment of the Saudi Public Investment Fund in Egypt and plan to convert our deposits in Egypt into investments,” the Egyptian Prime Minister’s Office posted on social media, Al-Falih said.
“We see Egypt as an extension of the Kingdom, a promising market and an important platform for exports to other countries in the region,” he added.
Al-Falih also outlined plans to collaborate with the Egyptian Minister of Investment to “double these investment opportunities and encourage Saudi investors to expand their existing investments.”
Egyptian Prime Minister Mostafa Madbouli reaffirmed his government's commitment to fostering a conducive environment for Saudi Arabian investment.
“We are committed to following everything related to Saudi investments in Egypt and I have given the order to facilitate all procedures related to these investments to help attract more new investments, which is a general trend of the Egyptian government at this time,” he said.
Economic relations between the two countries have grown significantly in recent times, with Saudi investment in Egypt reaching $32 billion as of September 2023. Egyptian companies have also received a significant number of investment licenses issued by the Saudi Ministry of Investment, receiving 30 percent of the 3,157 licenses approved in the first quarter of the year.
The meeting also reviewed the Mutual Funding Protection and Promotion Agreement, which was initiated last year to facilitate and protect investments made by each country in the other's territory.
Madbouly stressed the importance of the agreement, saying: “We have made significant progress in agreeing on most of the terms of the agreement and there are some issues that both parties are currently discussing.” He affirmed: “Personally, I will be following this important document closely,” adding that the Egyptian government has already resolved 70 percent of the issues facing Saudi investors.
Al-Falih acknowledged the significant investment opportunities in Egypt and recognized the challenges. He reiterated the Saudi leadership’s call to cooperate with Egypt for mutual benefit, saying: “We will work together to solve the remaining problems, and at the same time, we will work to attract new investments.”
PIF representative Muteb Al-Shatri confirmed that the fund currently invests around $3 billion in Egypt, noting the ongoing cooperation between the Saudi fund and the Egyptian sovereign fund through the Egyptian government's share offering program.
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“Currently, we are focusing on attracting private sector investment as a priority, and Egypt has a lot of promising investment opportunities, which underscores Egypt’s pride in its partnership with the Kingdom of Saudi Arabia and its commitment to integrating with the Kingdom in various fields such as trade, industry, tourism, and others,” he said.
