At a value of $7.7 billion.. 14 memorandums of understanding between Egypt and Saudi Arabia

The Saudi Public Investment Fund played a direct role in supporting the Egyptian economy by investing in companies owned mostly by the government. 

During the current year, the Saudi Egyptian Investment Company, affiliated to the fund, pumped about $1.3 billion to acquire stakes in 4 Egyptian companies listed on the stock exchange.

 The Saudi Sovereign Fund is currently working through its subsidiary “to close a number of new deals in Egypt, including the acquisition of parts of companies listed on the stock exchange and others that are not listed on the stock exchange”.

Digital Investments

Saudi Arabia and Egypt sign 14 memorandums of understanding worth $7.7 billion

In August, the Saudi Egyptian Company acquired 25% of "E-Finance for Financial and Digital Investments", 19.82% of "Abu Qir Fertilizers and Chemical Industries", 25% of "Mopco Fertilizers", and 20% of "Alexandria Container Handling".

Fathallah Fawzy, a member of the Egyptian-Saudi Business Council, explains that there is "a great demand in the current period from Saudi companies to invest in Egypt, especially in the real estate sector, specifically in new cities such as the Administrative Capital and the New Alamein City."

On the other hand, Amr El Alfy, head of research at Prime Financial, hopes that "investments will extend to new emerging companies, not just existing ones".

For her part, Aya Zuhair, an analyst of the Egyptian economy at Zila Capital, pointed out that the renewal of the Egyptian deposit "with the same very easy terms for Egypt's credit rating will be reflected in the Egyptian treasury not needing borrowing and incurring additional costs to repay these funds."

14 memorandums of understanding  worth $7.7 billion

In June, Saudi Arabia and Egypt signed 14 memorandums of understanding worth a total of $7.7 billion between the private sectors of both countries on the sidelines of Saudi Crown Prince Mohammed bin Salman's visit to Egypt.

Saudi projects in Egypt this year extended to new and renewable energy, as the Saudi company ACWA Power signed in November during the COP 27 climate summit in Sharm el-Sheikh an agreement to build a 10-gigawatt wind power plant in Egypt, at a cost of about $10 billion.  

The trial operation of the electrical interconnection project between Egypt and Saudi Arabia is scheduled to begin at the end of May 2025, provided that the official operation of the project, which costs $1.8 billion, will begin in two phases. The first in June 2025 with a capacity of 1,500 MW, and the second in November of the same year with a capacity of 1,500 MW as well.

deposits of the Gulf countries in Egypt 

The deposits of the Gulf countries with the Central Bank of Egypt constitute about 85% of Egypt’s hard currency reserves, so Saudi Arabia and the UAE have worked in the past few days to renew their deposits to give a boost and more stability to the Egyptian economy, and to send a message of reassurance by reducing outstanding debts in the short term.