Egypt Commits to Enhancing Investment in Saudi Arabia

Egypt pledged to take all necessary measures to facilitate increased investment by the Kingdom of Saudi Arabia in the country.

Egyptian Finance Minister Mohamed Maait said in a statement released Friday that the state is committed to supporting whatever is required to boost Saudi investment amid Egypt’s “unprecedented” support for the local and foreign private sector.

The same statement quoted Saudi Finance Minister Mohammed al-Jadaan as saying that the kingdom “has invested and continues to invest in various development projects in Egypt.” Earlier this week, he said, Saudi Arabia’s support for Egypt speaks for itself.

A year ago, Saudi Arabia, President Abdel Fattah el-Sisi’s chief financial backer, pledged to invest $10 billion in Egypt, which is facing its worst currency crisis in years. However, the largest economy in the Gulf region has only invested $1.3 billion so far when a division of the State Investment Fund bought government stakes in four Egyptian companies.

Last year, Saudi Arabia injected $5 billion into Egypt’s central bank, even though Finance Minister Mohamed Al-Jadaan said in Davos that his country is changing the way it bails out countries, looking to reform in exchange for pumping out liquidity.

Source: Bloomberg.