DUBAI: Saudi Arabia’s Public Investment Fund (PIF) has set up a company to invest in promising Egyptian sectors, extending a policy of pumping money into the Egyptian economy.
The $620 billion sovereign wealth fund said on Friday sectors in Egypt it would target through its new Saudi Egyptian Investment Co (SEIC) included infrastructure, real estate, health care, financial services, food and agriculture, manufacturing and pharmaceuticals.
Gulf countries have repeatedly come to Egypt’s aid in the past decade with billions of dollars in grants, cash deposits and fuel shipments.
Saudi Arabia said in June it intended to lead $30 billion worth of investments in Egypt following a visit to Cairo by de facto Saudi ruler and Crown Prince Mohammed bin Salman.
In March, Saudi Arabia deposited $5 billion with Egypt’s central bank as Egypt’s economy became strained by the repercussions of the Russian invasion of Ukraine and surging inflation, which led to outflows from government securities and a devaluation of its currency.
Egypt has for months been in talks with the IMF for further support after turning to it three times since 2016 for a total of $20 billion in financing.