{"id":643877,"date":"2024-09-17T00:00:00","date_gmt":"2024-09-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/17\/mohammed-bin-salman-tells-pif-to-pump-usd-5-bn-in-investments-into-egypt-in-first-phase\/"},"modified":"2024-09-17T00:00:00","modified_gmt":"2024-09-17T00:00:00","slug":"mohammed-bin-salman-tells-pif-to-pump-usd-5-bn-in-investments-into-egypt-in-first-phase","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/17\/mohammed-bin-salman-tells-pif-to-pump-usd-5-bn-in-investments-into-egypt-in-first-phase\/","title":{"rendered":"Mohammed bin Salman tells PIF to pump USD 5 bn in investments into Egypt in \u201cfirst phase\u201d"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Prime Minister Moustafa Madbouly\u2019s meeting with Crown Prince Mohammed<\/strong><strong> bin Salman ends with investment announcement:<\/strong> Saudi Crown Prince Mohammed bin Salman announced that he has directed Saudi\u2019s Public Investment Fund (PIF) to pump USD 5 bn in investments into Egypt as part of the \u201cfirst phase\u201d of a larger program of investment, according to a cabinet <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/share\/p\/LuXDTghELtHxrHg4\/\" style=\"\" rel=\"noopener\">statement<\/a>. A timeline of when we can expect to see the funds or what areas they will target were not disclosed.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We\u2019ve been on the look out for news like this for a while: <\/strong>Saudi Arabia is looking to turn its deposits with the Central Bank of Egypt into investments, Saudi investment Minister Khalid Al Falih <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/cd9d20a4-66f5-4c38-8d87-5d14990d600c\/saudi-arabia-to-use-cbe%253cmark%253e-deposits%253c%2Fmark%253e-to-fuel-egypt-investments\" style=\"\" rel=\"noopener\">first told<\/a> Prime Minister Moustafa Madbouly in August. Saudi Arabia is the second largest contributing nation to our long-term deposits, making up USD 5.3 bn of the USD 15.0 bn long-term deposits currently sitting at the central bank as of March 2024, according to the Central Bank of Egypt\u2019s most recent data set. Yesterday\u2019s statement did not confirm whether this is how the USD 5 bn from the PIF will be funded.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember:<\/strong> Madbouly touched down in Riyadh yesterday alongside Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib for talks with their Saudi counterparts aimed at strengthening trade and investment between the two countries.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The PIF is no stranger to Egypt:<\/strong> The sovereign fund\u2019s most recent moves in the country saw it join up with CIRA Education\u2019s majority shareholder in May <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5a82c702-10eb-4631-b5ba-77ad9f1a1781\/pif-returns-to-market-in-first-post-float-investment,-aims-to-take-cira-education-private-in-partnership-with-founders\" style=\"\" rel=\"noopener\">to acquire up to 100%<\/a> of the company. A little later on in the month, the fund \u2014 which <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/43da5fe1-bc9d-4ed3-b816-afc38d7a9962\/saudi-arabia%25e2%2580%2599s-public-investment-fund-ranked-as-world%25e2%2580%2599s-top-sovereign-wealth-fund-big-spender-in-2023\" style=\"\" rel=\"noopener\">ranked<\/a> as the world\u2019s highest-spending sovereign wealth fund in 2023 \u2014 <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/25d1e3c9-1102-40bb-9cb5-3dad57e30595\/pif-in-talks-to-get-a-piece-of-local-agriculture-firm-daltex\" style=\"\" rel=\"noopener\">began negotiations<\/a> to acquire a minority stake in local agriculture firm Daltex. In 2022 alone, the PIF through its Saudi Egyptian Investment Company <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/316415e5-ccc3-42ca-b442-80dd3b8b2e16\" style=\"\" rel=\"noopener\">invested<\/a> over USD 1.3 bn via SEIC to acquire stakes in state-held EGX-listed companies. Its holdings here include a 25% stake in Mopco, a 19.82% stake in Abu Qir Fertilizers, a <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/580af8a9-0b28-47e9-8cb0-043811c265a6\" style=\"\" rel=\"noopener\">27% stake in E-finance<\/a>, and a 20% stake in Alexandria Container and Cargo Handling.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Madbouly was keen to signal that Egypt is ready for business: <\/strong>In his meeting with bin Salman, and in an <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid0wHWyxCc1XDXMgyp5YEh6U6b6sth4NihoB7RqCFFv4EzN9zVREnzS4JWQUQc5dmcvl?rdid=ZJf7kCdR91edtK4W\" style=\"\" rel=\"noopener\">earlier speech to private sector players<\/a>, Madbouly noted that the majority of the approximately 90 problems identified by Saudi investors have already been sorted out. The 14 remaining issues will be solved by the end of the year, Madbouly added.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A bilateral investment agreement to push everything along will also soon be in place: <\/strong>The Agreement on Promotion and Mutual Protection of Investments between the two countries, which aims to help protect Saudi investors as Egypt looks to double their investments in the country, will be put into effect in two months or less after both sides sort out the necessary legislative and regulatory issues.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>As will a coordination council currently in the works: <\/strong>The crown prince said he wants to hold the first meeting of a coordination council between the two sides in October.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Saudi-Egyptian investment isn\u2019t just a one-way street: <\/strong>There are now over 5.7k Egyptian companies investing in the Saudi market, according to the prime minister.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The story also got ink in the international press:<\/strong> <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/africa\/egyptian-cabinet-says-saudi-crown-prince-told-pif-pump-5-bln-into-egypt-first-2024-09-16\/\" style=\"\" rel=\"noopener\">Reuters<\/a> | <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-09-16\/egypt-says-saudi-arabia-s-wealth-fund-set-to-invest-5-billion\" style=\"\" rel=\"noopener\">Bloomberg<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Details on the kinds of investments to be targeted remained sparse<\/p>\n","protected":false},"author":1,"featured_media":643878,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7272],"tags":[168,72,125,127,7345,151,219,132],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-643877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment-watch","tag-diplomacy","tag-enterpriseam","tag-investment-watch","tag-politics","tag-public-investment-fund","tag-renewables","tag-saudi-arabia","tag-trade","wpautop","entry"],"acf":{"mongo_id":"b037f3f4-3f02-46c6-b156-8e255c10923b","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/9\/1243.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Mohammed bin Salman tells PIF to pump USD 5 bn in investments into Egypt in \u201cfirst phase\u201d","related_issue":[643872],"teaser":"Details on the kinds of investments to be targeted remained sparse","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/9\/.400617c2-d43c-48a5-87d8-790ab6f06df3.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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