Saudi group to invest EGP 4B in Egypt’s medical sector

CAIRO – 18 April, 2017: A Saudi investment group specialized in the medical sector is seeking to inject EGP 4 billion ($220.32 million) worth of investments in Egypt, Minister of Industry, Tarek Kabil said in a Tuesday statement.

“The company expressed desire to work in medicine manufacturing. The ministry is targeting this vital industry, particularly producing cancer vaccines as Egypt’s annual imports of these serums worth $1.4 billion,” Kabil added.

The statement was released following a meeting between Kabil and Prince Turki Bin Mohammed Al- Saud in Cairo, where they discussed the potential activities of the Saudi company-which was not named in the statement-along with incentives and other investment opportunities available in the Egyptian market.

Egypt is targeting to attract $10 billion foreign direct investments by end of 2017. For that, the government has started to implement a comprehensive economic reform program which included free-floating the local currency, cutting fuel subsidies and applying a value added tax.

The reforms were necessary for Cairo to clinch a $12 billion loan agreement with the International Monetary Fund.

The government has finalized a new investment act aimed to lure new local and foreign investors as well as removing obstacles facing new investments. “The new investment law is being discussed at the Parliament. It offers multiple incentives for investors including, providing free lands in Upper Egypt governorates and returning back a part from the project capital to the investors as tax exemptions,” Kabil added.

Prince Al- Saud said the Egyptian market is “promising” and has massive investment opportunities in different fields; noting that the group’s capital is ready to be pumped and the feasibility studies are being prepared.