Qatar is reportedly in advanced talks to acquire as much as $2.5 billion of state-held stakes in Vodafone Egypt, the country’s biggest mobile network operator and other companies, as part of the authorities’ broader strategies to line up funding to hedge its economy against the fallout from Russia’s war in Ukraine.
Sources told Bloomberg that under the potential pact, Qatar Investment Authority (QIA) would acquire 20% in Vodafone Egypt from Telecom Egypt Company. The potential deal is expected to boost Egypt’s troubled economy, which is grappling with soaring food and fuel bills after Russia invaded Ukraine and an exodus of foreign investors in its local debt.
Qatar signed investment deals worth $5 billion with Egypt in March. The country is among the Gulf Arab states that pledged more than $20 billion in deposits and investments to shore up Egypt’s economy as the North African nation has been ramping up efforts to fight inflation.
Egypt’s President Abdel-Fattah El-Sisi visited Doha in September to seek further financial support and investment. Qatar Central Bank also deposited $3 billion into the Central Bank of Egypt in June to help the most populous Arab nation contend with soaring food costs.
The country also received $5 billion from Saudi Arabia in March and the Public Investment Fund through its Egyptian investment firm invests $1.3 billion in four firms in August. In April, Abu Dhabi wealth fund ADQ acquired stakes in five publicly-traded Egyptian companies including the country’s biggest private bank, Commercial International Bank and electronic payments provider, Fawry, for $1.8 billion.
Egypt finalised a staff-level agreement with the International Monetary Fund earlier in October for a financial support package.
