The Egyptian arm of the Saudi Public Investment Fund is in advanced talks to acquire The United Bank, one of the Egyptian government-owned banks, in a deal that could be worth around $600 million, according to Bloomberg, citing sources and Al Arabiya. net.
The sources said so Fund for public investment It will lead the acquisition through its subsidiary, the Saudi Egyptian Investment Company, which it founded in early 2022 to invest in large sectors of the Egyptian economy.
Sources had expected a final deal to be reached this month, though talks are still ongoing on final terms. Representatives of the Public Investment Fund declined to comment. Officials at the Central Bank of Egypt could not be reached for comment.
This comes as Saudi Arabia pledged $10 billion in investments in sectors such as health care, education and agriculture. It has already acquired state-owned stakes in 4 listed Egyptian companies for $1.3 billion and deposited $5 billion in the country’s central bank.
Saudi Finance Minister Mohammed Al-Jadaan said the kingdom had started “investing heavily in Egypt” and would continue to “look at investment opportunities, and that is more important than deposits. Deposits can be withdrawn, but investments they remain,” he said.
Egypt, one of the world’s largest grain importers, is racing to secure financial backing from its Arab allies in the Gulf to shore up an economy suffering from rising costs of importing food and fuel. Egypt has devalued its currency twice this year and reached a personal deal on a $3 billion loan from the International Monetary Fund, which is expected to be approved by the end of the month.
According to its website, The United Bank, founded in 2006, has 65 branches nationwide and more than 200 ATMs.
