ADQ’s $35 billion investment to boost Egypt’s liquidity
Goldman Sachs says the cash injection should end Egypt’s foreign exchange crisis
The headquarters of the Central Bank of Egypt (Getty Images)
Abu Dhabi sovereign wealth fund ADQ is leading a consortium that has agreed to invest $35 billion in Ras al-Hekma on Egypt’s northern Mediterranean shore to build a financial and tourism center, which may help resolve a long-stalled agreement on a $10 billion loan package with the International Monetary Fund.
The deal prompted Goldman Sachs to suggest that the injection of cash should end Egypt’s foreign exchange crisis.
“If the financing comes through as planned, we believe this, along with an upsized IMF program, should provide ample liquidity to cover Egypt’s financing gap over the next four years,” Goldman Sachs’s analyst Farouk Soussa said in the note to investors.