The Clap
Saudi Arabia’s Public Investment Fund (PIF) boosts its holdings in Egypt’s state-owned E-Finance For Digital and Financial Investments, marking a significant move in its investment strategy.
What
The PIF has increased its stake by 2%, reaching a total of 27% ownership, as confirmed by Ibrahim Sarhan, Chairman and Managing Director of E-Finance. This step comes after the PIF sent a request to the Financial Regulatory Authority (FRA) a month ago, signifying a strengthening of Saudi-Egyptian investment ties.
So What
This is a step in Saudi Arabia’s plan to broaden its investments. Earlier in August 2022, SEIC, a PIF subsidiary, acquired minority shares in four Egyptian state-owned companies, including E-Finance, in a $1.3 billion deal.
Now What
Saudi Arabia, Egypt’s second-largest investor with a total investment of $6.1 billion by the end of 2022, is increasing its presence in the Egyptian market. This aligns with the Egyptian government’s four-year IMF program, aiming to attract strategic investors by offering stakes in 35 state-owned companies.
