The Saudi-based Shaheen Group will invest EGP 500m in Egypt in the new and renewable energy sector, as a first phase of a larger investment plan in the country, company chairman Abdullah Shaheen announced Saturday.
In a press conference in Cairo on Saturday, Shaheen said these investments will be directed towards agricultural and solar projects. It will include a solar station in the New Valley, that will generate an additional 50mW to the national grid.
Shaheen noted that the timing is “appropriate” to invest in Egypt, especially in light of the new regulations adopted by the government to attract investments. He stressed the significance of investing in the energy sector in order to resolve the country’s energy crises.
Egypt’s government is adopting a “legislative revolution” to maintain the country’s position as the largest market in the Middle East and Africa to attract investors, said Minister of Supply Khaled Hanafy. Hanafy’s comments came during the 16th Conference of Arab Businessmen and Investors that took place in Cairo in late November, attended by 1,000 investors from Arab countries.
Meanwhile, Minister of Investment Ashraf Salman said the government is depending on the private sector to achieve 3.5% of GDP economic growth by the end of the current fiscal year. Salman added that the government is investing EGP 85bn, and expects the private sector to invest around EGP 280bn to achieve the desired target.
Following the ouster of former president Mohamed Morsi in July, Saudi Arabia provided Egypt with a $5bn aid package in the form of non-refundable grants, deposits and petroleum products. The Saudi aid was divided into $1bn cash, a five-year $2bn interest free deposit at the CBE and $2bn in the form of petroleum products.