Saudi Arabia to launch company to attract $10 billion investments in Egypt

Saudi Arabia’s Public Investment Fund (PIF) has signed on Saturday a draft agreement with the Sovereign Fund of Egypt to launch a new company, the Saudi Egyptian Investment Company (SEIC) to invest in the promising sectors worth $10 billion (EGP194 billion).

SEIC will target many sectors, including infrastructure, real estate development, food and agriculture, pharmaceuticals, financial services, health, and manufacturing, the statement added.

PIF said that this move will help to attract the long-term commercial returns and enhance cooperation across several strategic sectors.”

SEIC would support the expansion efforts of Saudi businesses and other PIF portfolio companies, PIF’s deputy governor Yazeed Alhumied, said.

The news comes after Saudi Crown Prince Mohammed bin Salman revealed that large investments will channeled in Egypt to complete the Saudi NEOM project, particularly in Sharm El Sheikh.

The Saudi investments volume in Egypt has reached more than $32 billion (EGP 611 billion) through more than 6,800 Saudi companies, according to a Saudi Press Agency.

Earlier in June, Egypt and Saudi Arabia have signed 14 investment agreements of $7.7 billion (EGP 147 billion) covering several areas, including petroleum, renewable energy, green hydrogen, information technology, e-commerce, pharmaceuticals, infrastructure and cybersecurity.