Kuwait is in advanced discussions with the Egyptian government to activate a planned $3 billion investment package, two government sources told EnterpriseAM.

 The talks are progressing, with both sides aiming to finalize an agreement on the first tranche before the end of 2025 or during the first quarter of 2026.

Unlike previous Gulf investment waves that focused heavily on real estate, Kuwait’s upcoming package will target a diverse range of sectors including ports, logistics, industrial projects, renewable energy, and potentially the aviation sector.

 Officials from Kuwait have also expressed interest in Egypt’s ongoing airport privatization program, the first offering of which, developed in cooperation with the International Finance Corporation (IFC), is expected to launch before year’s end.

The planned Kuwaiti investments will be partially financed by converting some of the $4 billion in deposits it holds at Egypt’s central bank into equity and direct projects. These will include investments in industrial assets, banking, and data centers. Discussions on this conversion have been ongoing since October 2024.

Kuwait has also shown strong confidence in Egypt’s financial instruments, earlier this year, Kuwait Finance House fully subscribed to Egypt’s $1 billion sovereign sukuk issuance.

This new development follows a wave of major Gulf investments in Egypt: just days ago, Qatar signed a $29.7 billion agreement for a North Coast megaproject, while Saudi Arabia is preparing to convert part of its USD 10.3 billion deposits into direct investments.

Recently, Prime Minister, Mostafa Madbouly, invited Gulf Cooperation Council investors and business leaders to expand their investments in Egypt, particularly in priority sectors that offer shared development gains for both sides, at the Egyptian-Gulf Investment and Trade Forum.