The Sovereign Fund of Egypt signed a draft agreement with Saudi Arabia’s Public Investment Fund to launch a new company – the Saudi Egyptian Investment Company – in Egypt to attract investments worth USD 10 billion (EGP 194 billion), the Egyptian cabinet said in a statement.
Saudi private companies will have better access to Egyptian markets and a variety of investment opportunities through the Saudi Egyptian Investment Company, targeting several sectors such as financial services, agriculture, health, manufacturing, and pharmaceuticals.
The news comes after Saudi Arabia’s Crown Prince Mohammed bin Salman revealed that large investments will be channeled to Egypt to complete the Saudi NEOM project, particularly in Sharm el-Sheikh.
Egypt’s partnership with its Gulf allies has helped alleviate its funding crisis in light of the Ukraine conflict and the COVID-19 pandemic. Goldman Sachs Group Inc. estimates Egypt may need to secure a USD 15 billion (EGP 286 billion) package from the IMF to meet its funding requirements over the next three years.
However, Minister of Finance Mohamed Maait underscored that the number is much lower, and that serious negotiations are underway to curb the crisis.
Earlier in June, Saudi Arabia and Egypt signed 14 agreements worth USD 7.7 billion (EGP 147 billion), which included the establishment of a “pharmaceutical city” by Egypt’s Pharco Pharmaceuticals in Saudi Arabia.
Established in 2018, the Sovereign Fund of Egypt aims to attract private investments to Egypt and co-invest with foreign partners to increase the role of the private sector in the economy and create jobs.