The $620 billion sovereign wealth fund has launched The Saudi Egyptian Investment Company in a bid to improve access for PIF and its portfolio companies, along with the Saudi private sector, to various investment opportunities in Egypt.
In recent years, Saudi Arabia and Egypt have enjoyed warm relations across all levels, including economic cooperation. According to the Saudi Press Agency, the volume of Saudi investments in Egypt amounts to more than $32 billion through more than 6,800 Saudi companies. Moreover, in June, Egypt and Saudi Arabia signed 14 investment agreements worth $7.7 billion that cover several fields, including petroleum, renewable energy, green hydrogen, IT, e-commerce, pharmaceuticals, infrastructure, and cyber security.
Why it matters
The move to open up the SEIC follows Saudi Arabia stating in June that it intended to lead $30 billion worth of investments in Egypt following a visit to Cairo by Crown Prince Mohammed bin Salman. Earlier this year Saudi Arabia deposited $5 billion to Egypt’s central bank as Egypt’s economy became strained by the repercussions of the Russian invasion of Ukraine and surging inflation.
