Kuwait Weighs Plan for Additional $4 Billion Investment in Egypt

Kuwait is in advanced discussions to convert $4 billion of deposits held in Egypt’s central bank into investments in the country, another boost for the Middle East’s most populous nation as it rebounds from the worst economic crisis in decades.

Both sides have agreed in principle to the conversion and Kuwait may invest at least half the amount by the end of this year, spread across several sectors and assets, people familiar with the matter said, asking not to be identified by name because of the sensitivity of the matter. No final decision has been taken on specific targets, they said.

The move will eliminate a $4 billion liability from Egypt’s balance sheet and simultaneously signal strengthening appetite from investors. It is also the latest sign of support from Arab Gulf nations, some of whom have sought to aid Egypt’s recovery from a crippling foreign-currency shortage. The United Arab Emirates provided $35 billion in investments and funding last year, which combined with packages from the International Monetary Fund, European Union and others to give Egypt a $57 billion boost.

The finance ministries of Kuwait and Egypt didn’t immediately respond to requests for comment. Thursday is a public holiday in Egypt.

Kuwait may invest in energy, agriculture, industry, information technology, real estate, banking and pharmaceuticals, the Egyptian presidency said earlier this month, following a visit to the Gulf state by President Abdel-Fattah El-Sisi. He also visited Qatar.

Egyptian Prime Minister Mostafa Madbouly told Bloomberg last week an economic committee has been formed and would soon come up with a list of potential projects for Kuwait to invest in.

Kuwait is also considering investing funds from Ekuity Holding — a unit of the sovereign wealth fund responsible for managing direct investments in Egypt — on top of the $4 billion in converted deposits, some of the people said.

Egypt cut interest rates earlier this month for the first time in almost five years, potentially spurring more investment. Rates had been at a record high since March 2024, when the country devalued its currency to help secure the bailout from the IMF.