Saudi wealth fund starts company for Egypt investments

Saudi Arabia’s sovereign wealth fund has started a company that will invest in swathes of Egypt’s economy from infrastructure and real estate to pharmaceuticals.

The Saudi Egyptian Investment or SEIC, is interested in the country’s ‘promising sectors,’ according to a statement by the Public Investment Fund.

Saudi Arabia had previously pledged $15bn to support Egypt, whose economy has come under pressure this year due the the crisis in Ukraine.

To shore up its finances, Egypt is seeking a new loan from the International Monetary Fund and has secured pledges of more than $22bn in deposits and investments from the kingdom and other oil-rich Gulf states, including the UAE and Qatar.

A major food importer, the North African nation has been hit hard by record grain prices fueled by the war. It previously bought most of its wheat from Russia and Ukraine.

The PIF, as the Saudi fund is known, has emerged as a global investor over the past few years as it also channels billions of dollars into the domestic economy.

The new company will “contribute to enhancing access for PIF and its portfolio companies, along with the Saudi private sector, to variety of investment opportunities in Egypt,” according to the statement.