Saudi Public Investment Fund Boosts Stake in E-Finance, Expanding Economic Ties with Egypt
The Saudi Public Investment Fund (PIF) has increased its ownership in Egypt's E-Finance by 2 percent, as confirmed by Ibrahim Sarhan, Chairman and Managing Director of E-Finance.
Sarhan revealed that the PIF had formally requested this stake hike from the Financial Regulatory Authority (FRA) nearly a month ago.
This move comes on the heels of the Saudi Egyptian Investment Company (SEIC), a PIF subsidiary, acquiring minority shares in four Egyptian state-owned enterprises, including E-Finance, in a substantial deal valued at $1.3 billion in August 2022.
Having secured a 25 percent stake in E-Finance for LE 7.5 billion last year, SEIC emerged as the largest single shareholder, obtaining two seats on the company's board.
The economic collaboration between Egypt and Saudi Arabia is poised for further expansion, with officials from both nations gearing up to finalize agreements with an estimated value of up to $1.5 billion.
These agreements are anticipated to be inked during the upcoming Egyptian-Saudi Business Forum, scheduled for Monday.
Turki Al-Hokair, a member of the Egyptian-Saudi Business Council, provided insights into the focus areas of these agreements, highlighting sectors such as energy, real estate, agriculture, and tourism.
Highlighting the growing economic ties, the Central Bank of Egypt reported that Saudi Arabia holds the position of Egypt's fourth-largest trading partner in the financial year 2022/2023.
The bilateral trade volume reached $6.555 billion, with imports from Saudi Arabia amounting to $4.941 billion and Egyptian exports to the kingdom totaling $1.613 billion.
Source: Egypt Today