Egypt’s state-owned United Bank is destined to be taken over by the Saudi’s, the two sides are holding back and forth negotiations.
According to sources privy with details of this massive deal, Saudi Arabia’s sovereign wealth fund will acquire Egypt’s state-owned United Bank in a deal that could be worth about $600 million.
The $620 billion Public Investment Fund would carry out the acquisition through Saudi Egyptian Investment Co. unit, which it set up earlier this year to invest in swathes of Egypt’s economy, the sources said.
Saudi Minister of Finance Mohammed Al-Jadaan said that the kingdom has started “investing aggressively in Egypt” and will continue “to look at investment opportunities, which is more important than deposits,” explaining that “deposits can be pulled but investments are long-lasting.”
Saudi Arabia is taking steps to provide financial support to countries in the region, as it looks to bolster allies and cement new relationships. For Egypt, the kingdom has pledged $10bn of investments in sectors such as health care, education, and agriculture.
It also already scooped up state-owned stakes in four Egyptian publicly listed companies for $1.3bn and deposited $5bn in the country’s central bank.
