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Jeddah - Yasmine El Tohamy - RIYADH: Saudi Arabia’s sovereign wealth fund is set to significantly increase its financing in Egypt, with plans to convert its deposits into direct investments following a key meeting between officials from both countries.

The discussions, held in New Alamein City, Egypt, focused on strengthening economic ties and expanding joint investment initiatives.

During the two-day visit, Saudi Minister of Investment Khalid Al-Falih emphasized his commitment to enhancing trade relations with Egypt.

According to a social media post by the Egyptian Prime Minister’s Office, Al-Falih stated: “We have a directive to increase the investments of the Saudi Public Investment Fund in Egypt, and a plan to convert our deposits in Egypt into investments.”

He added: “We see Egypt as a complement to the Kingdom and also as a promising market and an important platform for exporting to the region’s countries.”

Al-Falih also indicated plans to collaborate with the Egyptian Minister of Investment to “give these investments a greater chance to double and encourage Saudi investors to expand their existing investments.”

Egyptian Prime Minister Mostafa Madbouly affirmed the government’s commitment to fostering a favorable environment for Saudi investments.

“We are keen to follow up on everything related to Saudi investments in Egypt, and I direct to facilitate all procedures related to them, contributing to attracting more new investments, which is a general trend of the Egyptian government during this phase,” he said.

Economic relations between the two nations have recently seen notable growth, with Saudi investments in Egypt reaching $32 billion as of September 2023. Egyptian companies also secured a significant share of investment licenses issued by the Saudi Ministry of Investment, capturing 30 percent of the 3,157 licenses granted in the first quarter of the year.

The meeting also reviewed the mutual funding protection and promotion agreement, which was initiated last year to facilitate and safeguard investments made by each country in the other’s territory.

Madbouly highlighted the importance of this agreement, noting: “We have made significant progress in agreeing on most of the agreement’s clauses, and there are a few points currently being discussed between the two parties.” He assured, “I personally ensure close monitoring of this important file,” adding that the Egyptian government has resolved 70 percent of the challenges faced by Saudi investors.

Al-Falih acknowledged the significant investment opportunities in Egypt while recognizing the challenges. He reiterated the Saudi leadership’s directive to partner with Egypt for mutual benefits, stating: “We will work together to solve the remaining of these issues, and at the same time, we will work on attracting new investments.”

Muteb Al-Shathri, a representative of PIF, confirmed that the fund’s investments in Egypt currently amount to approximately $3 billion. He noted ongoing cooperation between the Saudi fund and the Egyptian Sovereign Fund through the Egyptian government’s offering program.

Hassan El-Khatib, Egypt’s newly appointed investment minister, echoed the commitment to nurturing existing Saudi investments in Egypt.

“We currently prioritize attracting investments from the private sector, and Egypt has promising investment opportunities, affirming Egypt’s pride in its partnership with the Kingdom of Saudi Arabia and its keenness to achieve integration with the Kingdom in several fields such as trade, industry, tourism, and others,” he said.