Egypt’s Cabinet has said Saudi Arabia’s Public Investment Fund (PIF) plans to invest $5 billion into the Egyptian economy, based on a directive issued by HRH Prince Mohammed bin Salman bin Abdulaziz Al-Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia.
The announcement followed a meeting between the Saudi Crown Prince and Egyptian Prime Minister Mostafa Madbouly in Riyadh. The two discussed bilateral relations, aspects of cooperation, and ways to enhance and develop them to achieve the mutual interests of the two countries and peoples.
The investment would be the latest major injection of cash Egypt has received as deals with a difficult economic landscape affected by high debt levels, inflation and a foreign exchange shortage.
Although the investment has been described as a “first phase” in the economic relations between the nations, no further details have been unveiled regarding the recipients of the funds and the nature of the investments.
The International Monetary Fund (IMF) had previously announced it would provide $8 billion as part of a funding programme for the North African nation. In order to receive the funds, Egypt agreed to impose a series of economic measures, including moving to a flexible exchange rate policy and boosting its private sector.
Earlier this year, UAE sovereign wealth fund ADQ agreed to invest $35 billion in Egypt’s Ras El Hekma development. The deal included $11 billion of UAE central bank deposits converted to local currency for investment.
This is not the first time Saudi Arabia’s PIF has invested in the Egyptian economy. In August 2022, the Saudi Egyptian Investment Company (SEIC), a subsidiary of PIF, acquired minority stakes in August 2022 in four Egyptian state-owned companies, including E-Finance, for $1.3 billion. Two years later, in August 2022, it was revealed that Saudi Arabia planned to convert its $10 billion deposit with the Central Bank of Egypt (CBE) into an investment.
