The four companies are Abu Qir Fertilisers and Chemical Industries (ABUK.CA), Misr Fertilisers Production Company (MFPC.CA), Alexandria Container and Cargo Handling (ALCN.CA) and E-Finance for Financial and Digital Investments (EFIH.CA).

All four companies are listed in the Egyptian Exchange (EGX).

The deal implements a June agreement between Egypt and Saudi Arabia that aims to boost PIF investment in Egypt.

The SEIC aims to support the Egyptian economy amid the ongoing global economic crisis by directing Saudi investments into infrastructure; real estate; healthcare; financial services; food and agriculture; as well as manufacturing and pharmaceutical sectors.

Chairman of TSFE Hala El-Said, who is also the minister of planning and economic development, expalined that the deal comes as a part of the country's strategy to maximise the value and utilisation of the state-owned assets by enlarging the ownership base of state-owned companies and fostering foreign direct investment,  El-Said stressed.

The deal also comes within TSFE’s strategy that focuses on attracting direct foreign and Arab investments across various sectors in the Egyptian market, the minister added.

El-Said stressed that the deal reflects foreign investor confidence in the Egyptian economy as a promising strategic market that enjoys numerous attractive investment opportunities.

Meanwhile, the Saudi side said on Wednesday that the SEIC's acquisitions in the four companies is in line with PIF’s strategy of exploring new investment opportunities in the MENA region.

The PIF aims to support the creation of long-term strategic economic partnerships to achieve sustainable returns to maximise the fund's assets and diversify Saudi Arabia’s economy in line with Vision 2030.

According to the Saudi side, the SEIC will contribute to boosting access for PIF and its portfolio companies, along with the Saudi private sector, to a variety of investment opportunities in Egypt.

New investments in Egypt will help drive long-term commercial returns, as well as enhance cooperation across many strategic sectors within the Egyptian market, the Saudi side added.

Yazeed Alhumied, deputy governor and head of Middle East and North Africa (MENA) Investments at PIF, stated that the SEIC's establishment comes in line with PIF’s ongoing expansion domestically and globally, and in alignment with Saudi Arabia's 2021-2025 strategy.

"In light of the economic growth in the region, SEIC will capitalise on lucrative investment opportunities within a number of promising Egyptian economic sectors, which will also support the expansion efforts of Saudi businesses and other PIF portfolio companies. The strategic economic partnerships that PIF has established with many investors and leading companies are among the most fundamental elements of its success," Alhumied added.

Egypt has recently launched a new strategy to expand the role of the private sector in the economy as well as attracting more foreign direct investment

Saudi Arabia, and other Gulf countries such as UAE and Qatar, have recently committed to increasing their investments in Egypt with the aim of supporting the Egyptian economy against the harsh impacts of the Russian-Ukrainian war that exacerbated the impacts of the COVID-19 pandemic.