Kuwait fund eyes $1bn firm to buy Egyptian stocks

Kuwait Investment Authority will set up a company to invest in Egypt's stock market
Kuwait fund eyes $1bn firm to buy Egyptian stocks
BIG INVESTOR Kuwait Investment Authority will set up a company with $1bn capital to invest in Egypts stock market (Bloomberg Images)
By Reuters
Thu 07 Apr 2011 01:39 PM

Kuwait Investment Authority (KIA), the Gulf state's sovereign fund, will set up a company with $1bn in capital to invest in Egypt's stock market, a local newspaper said on Thursday, citing the head of the chamber of commerce.

"The head of the Kuwaiti delegation visiting Cairo revealed a decision by Kuwait Investment Authority to establish a company with capital of $1bn to invest in the Egyptian stock market," Kuwaiti daily Al Rai quoted Ali al-Ghanim as saying.

"We affirm of Kuwait's positive position towards Egypt, and we are confident about investing in Egypt."

Officials at KIA were not immediately available for comment.

Kuwaiti investments in Egypt account for about $15bn, according to latest data, Egyptian Ambassador to Kuwait Taher Farahat told the Reuters Arabic service in an interview last month.

Egypt's benchmark index plunged for two days when the stock exchange reopened on March 23 after a suspension of almost eight weeks due to the political turmoil, but rebounded by more than 10 percent the following week.

The index was hit on Monday after the central bank announced net foreign reserves had dropped to $30.1bn at end-March, their lowest since October 2007, from $33.3 billion in February.

It was trading 1 percent down on Thursday at 0900 GMT.

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