Gulf States Eye Egypt Power Plant, Fuel Company in Investment Surge - Bloomberg

Gulf States Eye Egypt Power Plant, Fuel Company in Investment Surge - Bloomberg

Gulf Arab nations are interested in buying stakes in a fuel-distribution company owned by Egypt’s army and a power plant co-built by Siemens AG among their multi-billion-dollar investment pledges, according to the CEO of the North African country’s sovereign wealth fund.

“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Chief Executive Officer Ayman Soliman said in an interview Tuesday. The sales are planned for this year through either an initial public offering, a partnership with a strategic investor or a combination of the two, he said.

“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”

Oil-rich Gulf countries are looking to bolster Egypt’s economy as it comes under increasing strain from soaring commodity prices due to the war in Ukraine and seeks International Monetary Fund assistance. Some of the help also reflects a political focus. Saudi Arabia and the United Arab Emirates pumped billions of dollars into Egypt after the 2013 ouster of a president who hailed from an Islamist political organization many Gulf states see as a threat.