The Al-Futtaim Group of the United Arab Emirates aims to invest up to $1 billion in Egypt over the next three years, according to the North African country's Cabinet.

The pledge was made by CEO Omar Al-Futtaim during a meeting with Egyptian Prime Minister Mostafa Madbouly and other government officials in Cairo.

Mr Al-Futtaim stated that the Dubai-based firm has been involved in the Egyptian market for approximately 40 years and refers to Egypt as "his second nation."

Mr Madbouly stated that the Egyptian government intends to strengthen the role of the private sector and reform procedures in order to attract foreign investment in the future years.

The Arab world's most populous country is experiencing a number of economic issues as a result of the Russia-Ukraine conflict. These include an increase in imports, an increase in the budget deficit, rising inflation, and a declining currency.

Mr. Madbouly proposed a proposal to attract $40 billion in investment over the next four years by selling state assets to private investors, as well as to expand private investment to 65 percent of Egypt's overall investment from about 30 percent in three years.

Egypt has hiked interest rates twice since March in a bid to rein in double-digit inflation and entice foreign investors back following a $20 billion flight of "hot" money due to uncertainties. In recent months, Gulf countries, especially the UAE, have increased their financial assistance to Egypt.

In April, Abu Dhabi state holding firm ADQ paid around $1.8 billion to purchase shares in five publicly traded Egyptian companies as part of the company's $20 billion joint strategic investment platform with The Sovereign Fund of Egypt, which was established in 2019.

Egypt, Jordan, and the United Arab Emirates inked an industrial agreement earlier this week to foster long-term economic growth across five industries in the three nations. To achieve the partnership's goals as rapidly as possible, ADQ will administer a $10 billion investment fund.

Despite hurdles, Mr. Al-Futtaim, whose billionaire father Abdulla Al-Futtaim runs the family firm, expressed optimism about the cooperation and the Egyptian government's backing for the private sector.

The Al-Futtaim group, founded in the 1930s as a trade company, eventually separated business interests between Abdulla Al-Futtaim and his cousin Majid, the late founder of Majid Al Futtaim. Across 20 countries, the company operates five divisions: automobiles, retail, real estate, financial services, and health.

Al-Futtaim Automotive is one of the UAE's largest automobile distributors and has been Toyota's only distributor for more than six decades. The company also sells Honda vehicles and provides financial services through Orient Insurance.

Ikea, Ace Hardware, Marks & Spencer, and ToysRUs are among the group's retail franchise brands, while Dubai Festival City is one of its real estate initiatives. Cairo Festival City and Cairo Festival City Mall, as well as prominent retail stores such as Ikea and Marks & Spencer, are among Egypt's assets.