Saudi investment in Egypt at risk

Many of these investors are shocked to hear that many businesses, homes and public buildings have been looted and vandalized over the past few days because of an absence of police in the streets of Cairo and other major Egyptian cities. It is estimated that Saudi investments in the country total over $10 billion.

Playing down the concern of Saudi investors, Saeed Al-Onani, an economic adviser at the Egyptian Embassy in Riyadh, reassured the investors that he would hold meetings with the Egyptian authorities immediately after the formation of a new government to ensure the safety of Saudi investments.

“At present, the picture is not clear with regards to the fate of Saudi investments,” Al-Onani told Al-Eqtisadiah newspaper. “We might receive a clear picture of the whole situation after the formation of the new government within the coming two days,” he said, adding that he is closely following developments.

According to Al-Onani, the trade exchange between the two neighborly countries amounted to $2.5 billion last year. This included Saudi exports worth $2.5 billion and Egyptian exports amounting to $1.5 billion. He said that Saudi investments in Egypt, totaling over $10 billion, are mainly concentrated in the oil, agriculture, tourism and real estate sectors.

Ghassan Al-Namr, a prominent Saudi gold magnate, said that his factor in Cairo that manufactures gold and jewelry has been shut for a few days. “We have been forced to shift all our products to safer destinations in the wake of looting and arson,” he said, adding that he has invested SR380 million into the factory.

Khaleefa Al-Lahdan, director of public relations at Al-Zamil Industrial Company, said that the group’s steel factory, located in 6 October City, continues uninterrupted production and was unaffected by developments in the country. “About 7.6 percent of the company’s volume of sales came from its Egyptian unit,” he said.

The executive chairman of another industrial company said its plants in Cairo and Suez are operating normally.

Meanwhile, one of the Saudi Arabian Airlines offices in Cairo was reportedly gutted down following an arson attack.

A number of leading Saudi companies have pumped investments into various ventures in Egypt. They include Kingdom Holding Co., Savola, Amiantit, Al-Zamil Industries, Saudi Industrial Development Company (Sadaq), Al-Babtain, Almarai, and Ghassan Al-Namr Group for Gold and Jewelries.