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21 November 2019

Egypt sovereign wealth fund seeks more Gulf partners to lure investments

The fund is looking to tap into under-utilised state assets and attract investors in several key sectors and it targets managing as much as EGP 60 billion worth of assets, some of which it will own.

Bloomberg/Sima Diab

Egypt’s sovereign wealth fund is looking to more oil-rich Gulf allies to drum up foreign investment, as the Arab world’s most populous nation presses on with the next phase of its planned economic revamp, reported Bloomberg.

Ayman Soliman, the CEO of Egypt wealth fund, said that after launching a $20 billion investment platform with the UAE, the sovereign wealth fund is now setting its sights on Saudi Arabia, Kuwait and Oman as partners.

The partnerships could take several forms including setting up investment platforms or funds—talks with Oman are at the most advanced stage and could be completed by the end of 2019 and Saudi Arabia and Kuwait have an appetite to invest in Egypt, said Soliman.

Egypt’s first sovereign wealth fund, which was established last year with paid-in capital of EGP 5 billion ($310 million) and EGP 200 billion authorised capital, comes as the government tries to revive the nation’s economy. That bid began in earnest in 2016 with the devaluation of the pound and the securing of a $12 billion, three-year loan from the International Monetary Fund.

Partnerships, such as the one for an investment platform reached with the UAE’s Abu Dhabi Development Holding Company, are key to realising that goal.

Soliman said that the fund seeks to replicate that sort of partnership with Oman, Saudi and Kuwait, adding that the talks now are on how we can collaborate.

Projects under the UAE platform will be handled via a 50-50 partnership unless otherwise agreed, and the entity will start with companies in the banking and non-banking financial sectors as well as agribusiness and petrochemicals, said Soliman. The two sides may also invest in greenfield projects

Egypt will offer assets including land, buildings and existing companies and has access to liquidity, while the UAE will provide funding.

Soliman said the fund had seen investor interest from the West, Asia and Egypt and is planning an Asian roadshow.

Those who “made money over the past two years in the fixed income trade are now looking for alternate means of investing in Egypt, including in corporate bonds and equities,  said Soliman.

RELATED STORIES: non-banking financial sectors banking IMF Abu Dhabi Development Holding Company Egypt sovereign wealth fund agribusiness petrochemicals





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