Kuwait is negotiating to transform the $ 4 billion in deposits it holds at Central Bank of Egypt (CBE) into direct investments across several sectors, according to sources familiar with the matter who spoke to Bloomberg.

Kuwait is looking to move forward with its plan soon, with the aim of investing at least $ 2 billion before the end of this year. However, Bloomberg notes that no final decision regarding the exact timing has been made yet.

Back in October, Al Mal also reported — citing unnamed sources — that the Kuwait Investment Authority (KIA), the country’s sovereign wealth fund, was considering converting its deposits at the Central Bank of Egypt (CBE) into investments in public and private sector companies.

Ekuity Holding, which manages KIA’s investments in Egypt, is reportedly preparing to invest an additional, undisclosed amount in Egypt beyond the $ 4 billion in deposits, according to sources speaking to Bloomberg.

At the Kuwaiti-Egyptian Cooperation Council and Investment and Business Forum held last Wednesday, 52 new investment opportunities were presented to Kuwaiti investors. These included opportunities tied to Egypt’s state privatization program and projects in the automotive, chemicals, and textiles sectors, Al Arabiya reported.

The Kuwaiti delegation expressed strong interest in expanding investments in Egypt and participating actively in the upcoming Egypt-Gulf Investment Forum, which will be hosted in Cairo later this year, according to an official readout from Egypt’s Presidency following a meeting with President Abdel Fattah El Sisi.

According to Mohammed Al Saqr, head of the Kuwaiti side of the Egyptian-Kuwaiti Cooperation Council, Kuwaiti private investors are particularly interested in Egypt’s real estate, tourism, pharmaceuticals, and automotive sectors, citing their strong growth potential.

 Kuwait is also eyeing Egypt’s airport privatization program, which will see 11 airports offered to the private sector, as previously reported.

President Abdel Fattah El Sisi visited Kuwait earlier this month to boost investment ties, with Egypt aiming to attract up to $ 4 billion in new Kuwaiti investments during 2025.

This potential plan would significantly benefit Egypt by clearing $ 4 billion in liabilities, boosting investor confidence, attracting further investments, and strengthening the country’s foreign exchange reserves.