Saudi Arabia’s sovereign wealth fund is set to invest $5 billion in Egypt, marking the latest Gulf funding for the North African nation as it recovers from a severe economic crisis.
The investment, described as a “first phase” by Egypt’s cabinet, follows meetings between Egyptian Prime Minister Mostafa Madbouly and Saudi Crown Prince Mohammed bin Salman in Riyadh.
However, the timeline and specific investment areas remain undisclosed.
Gulf countries have been crucial investors in Egypt as it emerges from two years of economic turmoil, having secured a $57 billion bailout led by the IMF and United Arab Emirates.
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The UAE recently announced a $35 billion investment deal, which included development rights to a prime Mediterranean beachfront.
It’s uncertain whether Saudi Arabia’s funds represent new capital or part of earlier pledges, such as the $5 billion deposit in Egypt’s central bank in 2022 and a $10 billion investment commitment.
To date, Saudi investments through the Public Investment Fund (PIF) have amounted to $1.3 billion.
Additionally, there may be interest in developing the Ras Gamila region on the Red Sea coastline. Efforts to resolve investment disputes with Saudi firms by year-end were also discussed.
