Saudi Arabia’s Public Investment Fund (PIF) will invest $5 billion in Egypt as part of an initial funding phase. Saudi Crown Prince Mohammed bin Salman made the announcement after meeting with Egyptian Prime Minister Mostafa Madbouly in Riyadh. The investment aims to enhance partnerships in industrial and agricultural sectors, reflecting Saudi Arabia’s growing international investment interests.
Investment Protection and Future Plans
The Saudi-Egyptian Investment Protection Agreement has been finalized and will be activated within two months. This agreement addresses past disputes and aims to facilitate smoother investment processes. Prime Minister Madbouly highlighted that Egypt has resolved about 90 issues faced by Saudi investors, with only 14 remaining.
Egypt and Saudi Arabia will implement the electricity connection plan before summer. This project is set to further strengthen the economic ties between the two countries.”
Economic Context and Objectives
In August, Saudi Investment Minister Khalid Al Falih announced plans to convert a $10 billion deposit with the CBE. This deposit will shift into investments, enhancing economic cooperation between Saudi Arabia and Egypt. The move follows a previous investment by SEIC. In 2022, SEIC acquired minority stakes in Egyptian state-owned enterprises, including E-Finance, for $1.3 billion.
As of December 31, 2023, Saudi Arabia’s long-term deposits with the CBE stood at $5.3 billion. Egypt’s new cabinet, established in July, aims to triple foreign direct investment (FDI) from the record $10 billion achieved in 2022. The government has set a target of $30 billion in FDI for the current financial year, which began on July 1.
Investment Climate and Trade Relations
Egypt’s Minister of Investment and Foreign Trade, Hassan El Khatib, emphasized that the ministry focuses on resolving challenges and enhancing support for investors. The aim is to increase exports to $145 billion by offering more investment solutions.
Saudi Commerce Minister Majid bin Abdullah Al-Kassabi noted significant efforts to improve the business environment and attract investments. The volume of trade between Saudi Arabia and Egypt reached $12.78 billion in 2023, with Egypt being a major trade partner.
The continued cooperation between Saudi Arabia and Egypt highlights a strong commitment to mutual economic growth and strategic partnerships.
