UAE acquires 5.1% stake in Egypt's Palm Hills

Ahram Online, Sunday 9 Nov 2014

The acquisition is the latest among several other investments from Gulf countries in a short period of time

Aabar Investments
Aabar Investments (Photo: Courtesy of UAE IPIC official website)

UAE-based Aabar investments company bought a 5.1 percent stake in Egypt-listed Palm Hills for Development which announced the news to the Egyptian Stock Exchange on Sunday.

Egypt has managed to attract several investments from Gulf countries in a short period, the latest of which include offers to acquire BiscoMisr and Arab Daily.

"It is anticipated that Aabar will become a significant minority shareholder and will also aim to create value for Palm Hills Development by leveraging and building upon Aabar’s already sizable global portfolio of companies and relationships," said the statement.

Aabar is a subsidiary of IPIC which is fully owned by the Abu Dhabi government and recently announced its partnership with Egypt's wealthiest man Nassef Sawiris to build a coal-fired power plant at a cost of $3 billion.

Aabar also owns a significant stake in UAE-based Arabtec which is expected to build one million units of middle income housing in Egypt.

The United Arab Emirates, along with Saudi Arabia and Kuwait supported Egypt following the ouster of former president Mohamed Morsi in July 2013, providing a total of $10.6 billion in aid and grants in the fiscal year 2013/14.

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