Egypt could receive $4 billion from Gulf investors: CEO of Sovereign Fund

Ahram Online , Tuesday 7 Mar 2023

Ayman Soliman, the CEO of The Sovereign Fund of Egypt (TSFE), said Egypt could attract $4 billion from the Cooperation Council for the Arab States of the Gulf (GCC) market after resuming the initial public offering (IPO) programme this year.

ayman soliman
Ayman Soliman, the CEO of The Sovereign Fund of Egypt speaks during the EFG Hermes Conference in Dubai on Monday. Photo: EFG Hermes twitter account.


During an interview on Monday with CNBC on the sidelines of the EFG Hermes Conference in Dubai, Soliman said that 11 of the 32 state-owned companies that the government has recently decided to float will be offered through the TSFE's pre-IPO sub fund.

He noted that two or three companies will be listed as early as April.

The government will also announce within days investment opportunities in seven hotels that are owned by the Ministry of Public Enterprise Sector, he added.

In a separate interview with Bloomberg also on Monday, Soliman said that Egypt offers opportunity as an emerging market for investors who want to invest in specific sectors such as infrastructure, industrial assets and real economy assets.

"Our process in the pre-IPO entails carefully selecting those companies that have the right growth profile and the right management talent but do not have the right know-how or bandwidth to grow outside Egypt or tackle their next mergers and acquisitions," Soliman said.

Egypt is looking to various funding sources, including GCC investments, international financial institutions and state-owned assets’ sales, to close a $17 billion financing gap this year.

The country targets raising $2.5 billion from the sale of state-owned assets by the end of FY 2022/2023.

Soliman added that three banks – the government-owned Banque Du Caire (BdC) as well as the United Bank and Arab African International Bank (AAIB) which are partially owned by the government - would see better growth under different management.

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