RIYADH: Saudi Arabia's sovereign wealth fund is set to significantly increase its financing in Egypt, with plans to convert its deposits into direct investments following a key meeting between officials from both countries.
Discussions in the Egyptian city of New Alamin focused on strengthening economic ties and expanding joint investment initiatives.
During the two-day visit, Saudi Investment Minister Khalid Al-Falih emphasized his commitment to increase trade relations with Egypt.
According to a social media post by the Egyptian Prime Minister's Office, Al-Falih said: “We have instructions to increase the investment of the Saudi Public Investment Fund in Egypt, and plan to convert our deposits in Egypt into investments.”
He added: “We see Egypt as a complement to the kingdom and also as a promising market and an important platform for exports to countries in the region.”
Al-Falih also indicated plans to collaborate with Egypt's investment minister “to double these investments and give Saudi investors a greater opportunity to encourage them to expand their existing investments.”
Egyptian Prime Minister Mostafa Madboli confirmed the government's commitment to creating a favorable environment for Saudi investment.
“We are eager to follow everything related to Saudi investments in Egypt, and I direct the general trend of the Egyptian government at this stage to facilitate all the procedures related to them, contributing to attract more new investments,” he said. .
As of September 2023, Saudi investment in Egypt has reached 32 billion dollars. Egyptian companies also secured a significant share of investment licenses issued by the Saudi Ministry of Investment, capturing 30 percent of the 3,157 licenses. Provided in the first quarter of the year.
The meeting also reviewed the Mutual Fund Protection and Promotion Agreement that was started last year to facilitate and protect the investments made by one country in each other's land.
Madbouli highlighted the importance of this agreement, noting: “We have made significant progress in agreeing on most articles of the agreement, and there are some points being discussed between the two parties.” “I personally ensure close monitoring of this important file,” he assured, adding that the Egyptian government has resolved 70 percent of the challenges faced by Saudi investors.
Al-Falih recognized the challenges and acknowledged the significant investment opportunities in Egypt. He reiterated the Saudi leadership's directive to partner with Egypt for mutual benefit, saying: “We will work together to resolve these remaining issues, and at the same time, we will work to attract new investments.”
Muteb Al-Shathry, a representative of the PIF, confirmed that the fund's investments in Egypt currently stand at around $3 billion. He mentioned the ongoing cooperation between the Saudi Fund and the Egyptian Sovereign Fund through the Egyptian government's proposal program.
Egypt's newly appointed investment minister, Hassan El-Khatib, echoed the commitment to nurture existing Saudi investments in Egypt.
“We currently give priority to attracting investment from the private sector, and Egypt has provided investment opportunities in partnership with the Kingdom of Saudi Arabia, confirming Egypt's pride and willingness to achieve integration with the Kingdom in many areas such as trade, industry, tourism. And others,” he said.
