Saudi Arabia has deposited $5 billion in Egypt’s central bank, the Saudi state news agency reported on Wednesday, and the kingdom is expected to invest further as the Ukraine war adds to the pressure on the Egyptian economy.
Last week Egypt said it was in talks with the International Monetary Fund for potential funds and technical support to hedge against the effects of the Russia-Ukraine crisis on its economy.
Funding from additional donors is often a condition for finance from the IMF.
In addition, an Egyptian cabinet statement said on Wednesday Saudi Arabia’s state-owned Public Investment Fund (PIF) would invest additional funds in Egypt, but gave few details.
Cooperation between the PIF and Egypt’s sovereign fund will involve measures to attract $10 billion in investments, the cabinet statement quoted Egyptian Prime Minister Moustafa Madbouly as saying. A package of projects would be announced as soon as possible, he said.
It quoted Saudi Minister of State for Shura Council Affairs Essam bin Saeed as saying that a private investment company would be established in Egypt under an agreement signed with the Egyptians.
They would include investments in sectors such as education, health, especially medicine, agriculture, development and finance.
The PIF investments would help attract foreign currencies, support the use of local labour, bring in modern technology and expertise and enhance trade between Egypt and Saudi Arabia, the Egyptian cabinet statement said.
Russia’s invasion of Ukraine at the end of February has had a global impact on markets.
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