Sovereign Fund of Egypt, Saudi Public Investment Fund aim to attract $10 bn in investments

Mai Ghandour, Wednesday 30 Mar 2022

The Sovereign Fund of Egypt, in cooperation with the Saudi Public Investment Fund, aims to attract investments worth $10 billion during the coming period, Prime Minister Mostafa Madbouly said on Wednesday.

Cabinet meeting with members of the Saudi cabinet on Wednesday, in which a draft agreement between both countries had been approved. (Photo courtesy of the Egyptian cabinet)

Madbouly made the comments after the cabinet approved on Wednesday a draft investment agreement between Egypt and Saudi Arabia on the Saudi Public Investment Fund.

Madbouly said that this is part of a package of Saudi projects that will be established in Egypt and will be announced as soon as possible.

Minister of Planning and Economic Development Hala Al-Saeed, who is also the chairman of the Sovereign Fund of Egypt, signed the draft agreement.

The agreement aims to lure foreign investments, localise modern technologies in the Egyptian economy, and transfer expertise related to the Fund's investments in Egypt in a way that enhances the trade volume between Egypt and Saudi Arabia.

Essam bin Saeed, a member of the Saudi Cabinet and Minister of State for Shura Council Affair, said the investments of the Saudi fund will include several sectors such as in education, healthcare, agriculture, development, and the financial sector.

"It is true that the sovereign fund has commercial entities, but be fully confident that we are working on a partnership with Egypt that achieves growth in all fields," he said.

Earlier on Wednesday, Saudi Arabia deposited $5 billion in the Central Bank of Egypt (CBE) as part of the “rigid bonds and close cooperative relations” between the two countries and as a “gesture of confirmation of their deep-rooted relations,” according to Saudi state news agency SPA.

This comes a month after President Abdel-Fattah El-Sisi paid a visit to Riyad, where he met with Saudi Arabia’s King Salman to discuss boosting cooperation and coordination between the countries on several fronts “with the aim to protect Arab security.”

Egypt and Saudi Arabia have closely coordinated on regional and international issues since El-Sisi took office in 2014, with the two sides regularly holding top-level meetings.

Egypt signed in 2019 three financial agreements with Saudi Arabia to provide EGP 125 million to boost financial leasing for small and medium sized enterprises, under the Saudi Fund for Development.

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