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Earlier, Saudi Arabia signed an agreement of USD 35 billion for Egypt to be channelized through UAE sovereign wealth fund ADQ to develop Ras ElHekma on the north coast in February
Saudi Arabia is planning to convert its USD 10 billion deposit with the Central Bank of Egypt (CBE) into an investment, according to Saudi Investment Minister Khalid al-Falih. He revealed this decision during a meeting with Egyptian Prime Minister Mostafa Madbouly recently.
Earlier, Saudi Arabia signed an agreement of USD 35 billion for Egypt to be channelized through UAE sovereign wealth fund ADQ to develop Ras El Hekam on the north coast in February. This deal included USD 11 billion of Emirati central bank deposits converted to local currency for investment.
The proposed Saudi deal could be conducted along similar lines. Nada Hashim, a senior investment analyst at CI Capital Asset Management, said that the proposed debt swap is largely in line with recent trends. Hashim said she expects the investments to be used either for the much talked about Ras Gamila resort project on the Red Sea, or for investment in public equities, most likely in export or import substitute sectors.
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The General Authority for Investment has introduced new programmes over the past few years to streamline the process for foreign investors in Egypt. Chairman of the Saudi-Egyptian Business Council Bandar al-Amiri said that these efforts have solved 80% of Saudi investors’ problems with operating in Egypt.
