Affirming Egypt’s potential as a prospective investment destination, the UAE’s Global Investment Holding Co. has agreed to buy a 30 percent stake in tobacco manufacturer Eastern Co. for $625 million. Global Investment Holding will also provide Eastern Co. with $150 million to purchase raw materials for manufacturing.
It is not clear whether this $150 million was an additional amount or was included in the $625 million purchase price. The Cabinet statement added that this deal is a part of the government’s efforts to increase private investments in various sectors.
The Egyptian government had previously promised the International Monetary Fund that it would roll back the state’s involvement in the economy and allow private companies a much greater role as part of a $3 billion, 46-month financial support package signed in December. Meanwhile, Egyptian presidential spokesman Ahmad Fahmi said that Italian energy major Eni is planning to invest $7.7 billion in the country.
The announcement was made after Egyptian President Abdel Fattah El-Sisi met with Eni’s CEO, Claudio Descalzi, who lauded the firm’s activities in his country. The meeting was also attended by Egypt’s Minister of Petroleum and Mineral Resources, Tarek El-Molla, and senior Eni officials.
In August, El-Sisi revealed that Egypt will receive a $3.5 billion investment from UK multinational oil and gas company BP over the next three years. During the meeting with BP CEO Bernard Looney, the president highlighted Egypt’s desire to strengthen cooperation with the company, including in emissions reduction, energy transition, and green hydrogen production.