Saudi Arabia to Invest $5 Billion in Egypt Amid Economic Recovery
Egypt's Prime Minister Mostafa Madbouly announced a significant investment from Saudi Arabia, pledging $5 billion to support the nation’s economic recovery. This investment comes at a crucial time as Egypt emerges from its worst economic crisis in decades, following a 40% devaluation of its currency against the dollar. The announcement was made via the official Cabinet account on Facebook, highlighting Saudi Arabia's commitment to strengthening ties with Egypt.
Asset Sales and Foreign Investment: A New Direction for Egypt
In a strategic move to attract foreign investment, Egypt is in advanced negotiations to sell its remaining 20% stake in the Bank of Alexandria to the Italian bank Intesa Sanpaolo, which already owns 80% of the bank. This sale marks the first major divestment of state assets since the currency devaluation in March. Investors and the International Monetary Fund (IMF) are closely monitoring these developments as they signal the Egyptian government's dedication to its divestment program, crucial for economic revitalization.
Egypt's Plans for International Bonds and Continued Investments
In addition to asset sales, Egypt plans to issue international bonds for the first time since late 2021, aiming to raise about $3 billion in foreign debt during the fiscal year. Finance Minister Ahmet Kucuk has been actively meeting with international investors to discuss this initiative. The government is also looking to replicate successful investment deals like the $35 billion agreement with the UAE, targeting various sectors including banking, energy, and real estate.
