#Saudi Wealth Fund Unit Buys Egypt Company Stakes for $1.3 Billion - Bloomberg

Saudi Wealth Fund Unit Buys Egypt Company Stakes for $1.3 Billion - Bloomberg

A unit of Saudi Arabia’s sovereign wealth fund scooped up state-owned stakes in four Egyptian publicly listed companies for $1.3 billion, as part of the kingdom’s commitment to channel resources to the struggling economy of a country seen as a linchpin in the Arab world.

The Saudi Egyptian Investment Co., a new firm set up by the $620 billion Public Investment Fund, acquired minority stakes in Abou Kir Fertilizers & Chemical Industries Co., Misr Fertilizer Production Co., Alexandria Container and Cargo Handling Co., and E-Finance, Egypt’s Planning Ministry and the PIF -- as the Saudi fund is known -- said in separate statements Wednesday.

The kingdom has pledged $10 billion of investments into Egypt in sectors such as health care, education and agriculture. It already provided support in March, when it deposited $5 billion in Egypt’s central bank.

A major food importer, Egypt has been hit hard by Russia’s invasion of Ukraine. The conflict has sent the North African nation’s wheat and fuel bills soaring, put pressure on its currency and prompted it to seek International Monetary Fund assistance.