Gulf allies line up in investment and funding for Egypt

Saudi Arabia has deposited $5 billion at Egypt's central bank, according to state media in both countries. The funding comes amid a surging wheat import bill.

The Egyptian and Saudi governments have signed a draft agreement for Saudi investments in the country totaling a projected $10 billion, according to a statement by the Egyptian cabinet.

The new deposit roughly doubles Saudi funds at the CBE to more than USD 10 bn, after Riyadh in October provided Egypt with USD 3 bn to help us overcome the effects of the pandemic and shore up its foreign reserves and extended the maturity of another USD 2.3 bn of existing deposits.

Also, Abu Dhabi wealth fund ADQ has earmarked USD 2 bn to buy state-owned stakes in public companies. ADQ is reportedly eyeing state-owned stakes held in EGX-listed CIB and Fawry, high-profile, private-sector financial services companies, as well as a number of state-owned, semi-privatized fertilizer companies.

On Tuesday, Egypt's cabinet also announced that Qatar is to plough $5 billion into "investments and partnerships" in Egypt, without giving specifics.

This means that Egypt's Gulf allies have lined up in investment and funding for Egypt, most of it having been announced this week after ADQ led the way earlier in the month.