Hot off the heels of announcing the Saudi Egyptian Investment Co (SEIC), the PIF owned fund has made its first moves and purchased minority stakes in four Egyptian companies for a cool $1.3 billion. The companies are Abu Qir Fertizilers and Chemical Industries, Misr Fertilizers Production Company, Alexandria Container and Cargo Handling, and payments firm E-Finance for Financial and Digital Investments.
The move also falls in line with the Sovereign Fund of Egypt’s (TSFE) strategy to attract direct foreign and Arab investments across various sectors in the Egyptian market. Established in 2018, TSFE aims to attract private investments to Egypt and co-invest with foreign partners to increase the role of the private sector in the economy and create jobs.
Why it matters
Saudi Arabia had previously pledged $15bn to support Egypt, whose economy has come under pressure this year due the the crisis in Ukraine. A major food importer, the North African nation, has been hit hard by record grain prices fueled by the war. The move also comes as the Kingdom looks to grow its sovereign fund reach 10 trillion riyals.
