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Abdul Elah Kaki: A Saudi Businessman Investing in Egypt
Abdul Elah Kaki is a prominent Saudi businessman known for his extensive investments in Egypt, particularly in the agricultural and industrial sectors. His investment portfolio in the country is estimated at approximately 12 billion Egyptian pounds, encompassing various projects in agriculture, industry, and engineering.
Major Investments in Egypt
Tanta Flax and Oil Company
In 2005, Kaki acquired Tanta Flax and Oil Company for 83 million Egyptian pounds. However, in 2013, a judicial ruling annulled the privatization, returning the company to state ownership. This led to disputes over compensation, with Kaki initially seeking around 1 billion Egyptian pounds, while government entities offered approximately 200 million pounds.
Infant Formula Factory
Beyond Tanta Flax, Kaki has shown a commitment to addressing local needs. In 2014, he announced plans to invest 60 million Egyptian pounds in establishing a factory in 10th of Ramadan City dedicated to producing infant formula. This initiative aimed to mitigate shortages in the Egyptian market, with an expected annual production capacity of 17,000 tons (equivalent to about 35 million cans) and the creation of approximately 1,000 jobs.
Challenges and Legal Disputes.jpg)
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Kaki's investment journey in Egypt has encountered challenges, particularly concerning the Tanta Flax and Oil Company. After the 2013 court ruling, he sought compensation for his investments and losses. In 2015, his group formally requested the Egyptian government to repay 1 billion pounds, reflecting the company's value and the investments made post-acquisition.
Additionally, in 2014, he withdrew a $375 million international arbitration claim concerning the Nubaseed Agricultural Company after assurances from the Egyptian government to amend investment laws and protect investors' rights.
Commitment to Economic Collaboration
Despite these challenges, Kaki has demonstrated a willingness to resolve disputes amicably. His continued engagement in Egypt highlights his commitment to fostering economic collaboration between Saudi Arabia and Egypt. His investments in agriculture and industry have played a crucial role in strengthening the economic ties between the two nations.
Conclusion Abdul Elah Kaki has played a significant role as a Saudi investor in Egypt, contributing notably to the agricultural and industrial sectors. While his ventures have faced legal and administrative hurdles, his perseverance underscores a strong commitment to economic development and bilateral cooperation between Saudi Arabia and Egypt.