Abu Dhabi invests in Egyptian firms to help shore up economy

An Abu Dhabi wealth fund is buying stakes in key Egyptian companies, including the country’s largest listed bank, as part of efforts to shore up the North African nation’s economy.

ADQ said it’s buying into Commercial International Bank, Fawry for Banking & Payment Technology Services SAE, Alexandria Container & Cargo Handling Company, Misr Fertilizers Production Company and Abu Qir Fertilizers & Chemical Industries.

The fund didn’t specify how much it will spend, but Bloomberg has previously reported ADQ plans to invest about $2bn in Egypt. That includes a stake of about 18 per cent in Commercial International Bank.

“Since the inception of ADQ’s $20bn strategic investment platform with the sovereign fund of Egypt, we have executed several investment opportunities,” ADQ chief executive officer Mohamed Hassan Alsuwaidi said. “The recent transactions are a testament to our long-term commitment to elevate our investment partnership with Egypt and continue deploying capital in projects of commercial importance.”

Such funding is welcome for Egypt, where the economy is being put under increasing pressure from the shockwaves of Russia’s invasion of Ukraine. The central bank held a special policy meeting in March and hiked interest rates for the first time since 2017, while the currency weakened sharply.