Saudi Arabia’s Minister of Investment Khalid Al-Falih has revealed plans to increase the investments of the Saudi Public Investment Fund (PIF) in Egypt.
This includes converting existing Saudi deposits in Egypt into investments.
In March 2022, Saudi Arabia deposited $5 billion into the Central Bank of Egypt, raising its total deposits in Egypt to $10.3 billion.
This deposit, initially set for one year, is extendable upon mutual agreement.
Al-Falih’s announcement followed a meeting with Egyptian Prime Minister Mostafa Madbouly at the government’s headquarters in New Alamein City.
Al-Falih highlighted the intensive collaboration over the past two days with Egyptian ministers to explore shared opportunities for enhancing bilateral relations.
Currently, PIF’s investments in Egypt amount to approximately $3 billion. According to Mutab Al-Shathri, the PIF’s representative in Egypt, there is ongoing cooperation with Egypt’s Sovereign Fund through the government companies’ offerings program.
Companies that PIF has invested in have established partnerships with Saudi firms.
Following the meeting, Prime Minister Madbouly stated that the Egyptian government has resolved 70% of the issues faced by Saudi investors.
He emphasized the need to expedite the completion of a joint investment protection agreement.
Bander Al-Amri, head of the Saudi-Egyptian Business Council, expressed optimism that the agreement would significantly boost Saudi investments in Egypt.
He noted the substantial increase in Egyptian companies operating in Saudi Arabia, from 500 to 4,000, with their investments rising from 5 billion to 50 billion Saudi riyals.
According to a mid-2023 report by Egypt’s Ministry of Planning, Saudi investments in Egypt reached around $32 billion. Since then, additional investments have been announced, including $2 billion projects at the Gulf-Egyptian Business Forum in Cairo in November. Saudi Arabia has also shown interest in developing the 860,000 square meter Ras Jamila area on the Red Sea coast.
Al-Falih emphasized that while the opportunities in Egypt are vast, the challenges are significant. He reiterated the Saudi leadership’s directive to partner with Egypt for the mutual benefit of both nations’ populations.
