GCC countries expand their acquisitions in Egypt due to Cairo’s need for dollars

Gulf states are poised to buy stakes in successful Egyptian companies in light of the severe dollar crisis in Cairo, which analysts say is in the interests of both sides.

According to a recent report from the International Monetary Fund, according to a recent report from the International Monetary Fund, due to the government’s plan to “sell state assets” to contribute to closing a financing gap of about $17 billion over the next four years, the Gulf countries account for the lion’s share of share of acquisitions. in the Egyptian market over the past year.

In a report published in December, Egyptian e-content preparation and development company Enterprise Ventures analyzed 66 acquisitions that took place in the Egyptian market in 2022. This is more than double the number of transactions made in the previous year.

The acquisitions were led by Sovereign Wealth Fund Abu Dhabi (an ADQ holding company) and the Saudi Sovereign Investment Fund, which entered into 40 deals, pumping around $3.1 billion, “to acquire large minority stakes in some of the most powerful publicly traded companies.” . on the Egyptian Stock Exchange from the Government. According to a report from Enterprise.

“What is happening is in line with the strategy adopted in Egypt and the Gulf countries by increasing the participation of the private sector in their economies,” said Ali Metwally, an economic analyst for the Middle East and North Africa.

He stressed that these acquisitions “support non-oil income, which all the Gulf countries are striving to increase.”

On the other hand, the Egyptian government is trying to provide opportunities for investors from the Persian Gulf to push the process of foreign exchange inflow into the country.

Since the beginning of this year, the Gulf countries have continued to acquire Egyptian businesses in various sectors, and perhaps the most recent of these plans are negotiations with the Saudi Investment Fund to fully acquire The United Bank, owned by the Central Bank of Egypt, and one of the three banks whose shares will be placed on the stock exchange.

Source: AFP