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The government could turn its deposits at the Central Bank of Egypt (CBE) into foreign direct investment (FDI), Investment Minister Khalid Al Falih told Prime Minister Moustafa Madbouly in New Alamein on Thursday, according to two separate statements (here, and here). Al Falih also said the Kingdom expects that the Public Investment Fund will commit more capital to Egypt. Al Falih also met with Egypt’s ministers of planning, transport, and industry.
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What they said: The PIF’s companies have investments in Egypt amounting to around USD 3 bn, said Muteb Al Shathri, the PIF’s representative in Egypt. He highlighted the existing cooperation between the fund and the Sovereign Fund of Egypt through the government’s IPO program.
What’s next? The two sides are working to finalize an agreement on the protection and promotion of bilateral investments. “We have made significant progress on agreeing to most of the agreement’s terms, with only a few points currently under discussion between the parties,” said Madbouly.
IN CONTEXT- Saudi’s long term deposits at the CBE are valued at USD 5.3 bn — out of the bank’s total USD 14.9 bn long-term deposits — according to the CBE’s latest external position report for 1H FY 2023-2024 (pdf). Meanwhile, Saudi direct investments in Egypt totalled USD 2.4 bn in FY 2022-2023, up from USD 491 mn in FY 2021-2022, and that figure is USD 235 mn in 2Q FY 2023-2024, according to the CBE’s monthly bulletin for May (pdf). Saudi Arabia has provided Egypt with USD 12.9 bn in finance, accounting for 7.7% of Egypt’s entire sovereign debt profile.
