By Enyichukwu Enemanna
Saudi Arabia’s Crown Prince Mohammed bin Salman has directed the Saudi Public Investment Fund (PIF) to pump $5 billion worth of investment money into Egypt in what it called a “first stage”, Egyptian cabinet announced on a statement on Monday.
The directive came after the meeting of the Egyptian Prime Minister Mostafa Madbouly, with Saudi crown prince in Riyadh where discourse bordered around boosting bilateral relations.
The statement did not specify when the funds will be invested, the nature of the investments, or in how many stages the Saudi government is planning to make its investments.
Heritage Times HT recalls that in 2022, Saudi Arabia’s Public Investment Fund (PIF) set up a company to invest in what it considered promising Egyptian sectors, in extension of a policy of pumping money into the Egyptian economy.
The $620 billion sovereign wealth fund said sectors in Egypt it would target through its Saudi Egyptian Investment Co (SEIC) included infrastructure, real estate, health care, financial services, food and agriculture, manufacturing and pharmaceuticals.
In June 2022, Saudi Arabia said it intended to lead $30 billion worth of investments in Egypt following a visit to Cairo by the Crown Prince.
In March same year, Saudi Arabia deposited $5 billion with Egypt’s central bank as Egypt’s economy suffered the repercussions of the Russian invasion of Ukraine.
The surging inflation led to outflows from government securities and a devaluation of its currency.
