In February 2024, the United Arab Emirates signed a $35 billion investment agreement with Egypt to develop Ras al Hikma on the Mediterranean coast, marking one of the largest foreign investments in the country’s history.
Since 2022, Cairo has faced a severe debt crisis and foreign currency shortage. In response, funds from the United Arab Emirates, Saudi Arabia, Qatar and other Gulf sovereign wealth funds have invested billions in Egyptian state assets. They have purchased stakes in Egyptian banks, logistics firms, and development projects, while also financing large infrastructure initiatives. For Egypt, these investments provide critical foreign currency, which helps support efforts to stabilize its economy. Yet analysts have raised questions about whether growing Gulf ownership of strategic assets could shift political leverage within the Middle East.
In recent years, Egypt has faced severe financial pressure. The country’s external debt has surpassed 42 percent of GDP, while debt servicing obligations approach $40 billion annually, according to a Washington Institute analysis of Egypt’s debt crisis.
Since 2022, Cairo has confronted a worsening debt crisis and foreign currency shortage. In response, Gulf sovereign wealth funds have invested billions in Egyptian state assets, purchasing stakes in banks, logistics firms, and development projects while financing large infrastructure initiatives. For Egypt, these investments provide critical foreign currency that helps support efforts to stabilize the economy. Yet they also raise questions about whether growing Gulf ownership of strategic assets could shift political leverage within the Middle East.
Tourism revenues have declined amid regional instability, and income from the Suez Canal has fallen. With Cairo under pressure to seek large inflows of foreign capital, Gulf sovereign wealth funds have stepped in. Abu Dhabi’s ADQ and Saudi Arabia’s Public Investment Fund have purchased significant stakes in Egyptian companies across sectors such as banking, logistics, and fertilizer production. In one transaction, ADQ bought roughly 18 percent of Commercial International Bank, Egypt’s largest private bank, for about $911 million. Saudi investors also acquired shares in several Egyptian firms worth around $1.3 billion.
These purchases form part of a broader shift in Gulf economic policy. Earlier support to Egypt often came in the form of grants or central bank deposits. Today, Gulf states increasingly seek commercial returns. According to an Atlantic Council analysis of Gulf investment strategy, sovereign wealth funds from Saudi Arabia and the United Arab Emirates have moved toward equity investments in strategic sectors rather than providing unconditional financial aid. This reflects a wider shift toward market-based investments that generate long-term returns.
The scale of Gulf involvement became clearer in February 2024, when a major UAE led investment deal targeted development along Egypt’s Mediterranean coast. The deal includes a $24 billion land purchase and the conversion of $11 billion in Emirati deposits held in Egypt’s central bank. Soon after, the International Monetary Fund expanded its support package for Egypt from $3 billion to $8 billion.