(Photo handout of Presidency)
Kuwait has completed the lengthy establishment of a company through which the state’s future investments in Egypt will be carried out, a source familiar with the Gulf state’s Egypt investments said.
“The general assembly of the holding company, with a capital of EGP 1bn, was finalised last week during a visit by Kuwaiti officials to Egypt,” the source told the Daily News Egypt, asking not to be named. The company’s capital will be paid before the end of April, the source said.
The Kuwait Investment Authority, the Gulf state’s sovereign fund, had announced in April 2011 the establishment of a company with a capital of EGP 1bn to serve as its “investment arm” in Egypt, which had only just begun a period of political transition that continues till today.
“The company has hired the Arab African International Bank as its adviser on investing in Egypt,” the source said. He added that investment opportunities will all be weighed, with the services sector, including tourism, being a key focus.
The source further explained that Kuwait will be targeting between “5%-10% shares of large transactions” in Egypt, rather than Greenfield investments.
Kuwait, along with Saudi Arabia and the UAE, have jointly injected over $30bn into the Egyptian economy since June 2013 in support of the military-backed government that has since come to the helm.
The latest of such support was announced in March. The three monarchies and Oman pledged $12.5bn to support the Egyptian government in its quest to revive a beaten economy.
Kuwait’s ruler, Sheikh Sabah Al-Ahmed Al-Sabah said his country will provide $2bn in the form of investments, and another $2bn as s central bank deposits.
“The deposits’ will arrive between Monday and Thursday,” the source said.
Egypt’s economy is showing signs of recovery. During the first half of the current fiscal year, the economy grew by 5.6% and net FDI was $2.7bn, compared with the year-earlier figures of 1.4% and $2.1bn, respectively.
