In a move to strengthen economic ties between Egypt and Saudi Arabia, Egypt’s General Authority for Investment and Free Zones (GAFI) is preparing to open a new Saudi investment office in Cairo, according to GAFI’s CEO, Hossam Heiba.
GAFI is planning to open similar offices for other countries with major investments in Egypt, Heiba noted.
The office will focus on supporting Saudi investors by showcasing investment opportunities in Egypt, fielding inquiries, and tackling any challenges they encounter. Additionally, GAFI intends to conduct a comprehensive survey of Saudi investments in Egypt in the near future in response to a lack of current data, as many investments are funneled into the country through global firms.
Heiba stated that Egypt and Saudi Arabia have reached an agreement to increase new investments in the country, highlighting the priority given to the Kingdom’s investments.
Additionally, Saudi Minister of Investment Khalid Al-Falih revealed the kingdom’s intention to transform its USD 10 billion (EGP 493.8 billion) deposits held at the Central Bank of Egypt (CBE) into investments within Egypt. The CBE confirms that $5.3 billion of these deposits are set to be reimbursed by the end of October 2026.
A Strong Economic Relationship
Egyptian investments in Saudi Arabia are on the rise, with around 4,000 Egyptian companies now operating in the kingdom, with an investment higher than USD 1.6 billion (EGP 79 billion). This surge highlights the rapid expansion of Egyptian businesses within the Saudi market and the deepening economic ties between the two nations.
In the first quarter of 2024, Egyptian companies obtained a notable 950 out of 3,157 investment licenses issued by the Saudi Ministry of Investment, representing 30 percent of the total. This marks a 148 percent increase from the same period in 2023, according to a report released by the Saudi Ministry on June 4.
The total trade volume between Egypt and Saudi Arabia surged by 23.9 percent, reaching a total volume of USD 5.6 billion (EGP 276.9 billion) in 2022, marking a significant leap from the USD 4.5 billion (EGP 222.2 billion) recorded the previous year.
Similarly, by November 2023, Saudi Arabia had invested USD 6.3 billion (EGP 311 billion) in Egypt, funding 7,444 projects across various sectors including industry, construction, tourism, services, and telecommunications. Additionally, the Saudi private sector has invested in Egypt’s markets around USD 35 billion (EGP 1.7 trillion).
In the first half of 2024, Egypt’s merchandise exports to Saudi Arabia climbed by 13 percent, totaling USD 1.587 billion (EGP 78.43 billion). This marks the highest export figures between the two countries in the past five years, exceeding the USD 734 million (EGP 36.27 billion) trade volume recorded in 2020.
Egyptian exports to Saudi Arabia include medicines, carpets, vegetables, citrus fruits, copper, and wires; imports from Saudi Arabia include mineral oils, aluminum sheets, cardboard boxes, boards, films, foil, strips, and metal coloring materials.
The upcoming opening of a Saudi investment office in Cairo represents a major advancement in the expanding economic partnership between Egypt and Saudi Arabia, highlighting dedication to mutual economic growth.
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