Last April, Egypt announced the sale of nearly $40 billion in assets over four years in an attempt to revive a crisis-stricken economy. Several Gulf countries jumped at the opportunity and have already spent some 20 billion dollars for the acquisition of public assets for sale.
The perfect opportunity for these opportunistic investors to monopolize the most profitable companies and public assets. But, internally, the operation arouses great concern. Indeed, on July 3, the Egyptian Parliament, all won over to President Abdel Fattah al-Sissi, approved an agreement signed at the end of March between the Egyptian and Saudi governments. This is supposed to facilitate the acquisition by the Saudi Public Investment Fund (PIF) of Egyptian assets. This new agreement comes as trade between them two countries saw a jump of 62.1% in 2021. They reached 8.6 billion euros in 2021 compared to 5.3 billion euros in 2020, according to the Egyptian Agency for Statistics.
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The green light from Parliament comes a few days after the Abu Dhabi Ports Group announced the acquisition of 70% of the Egyptian holding company International Associated Cargo Carrier (IACC) – which owns the shipping companies Transmar and Transcargo – , for an amount of 514 million Emirati dirhams (140 million dollars).