(Ecofin Agency) - The Qatari investments are expected to boost Egypt's economy, which is hit hard by the effects of the war in Ukraine. 

Qatar is currently in advanced talks to acquire US$2.5 billion stakes in Egyptian state-owned companies, including the country's largest telecom operator, Bloomberg reported Wednesday, citing sources close to the matter.

Qatar Investment Authority, the country’s sovereign wealth fund, is expected to take a 20% stake in Vodafone Egypt, the sources said.

The investments, which should be finalized by the end of this year, could boost Egypt’s economy, which is hit by the consequences of the war in Ukraine. Since the start of the war, foreign investors have withdrawn US$22 billion from the Egyptian debt market and the country is battling with higher food and fuel import bills. 

In June 2017, Egypt severed ties with Qatar, because notably of Doha’s alleged support to the Muslim Brotherhood, which won the presidential elections after the 2011 revolution before being banned, in 2013 when Mohamed Morsi was overthrown by Marshal Abdel Fattah al-Sissi. The relations were restored in January 2021 in the framework of the Gulf Reconciliation Agreement. In March 2022, Qatar deposited US$3 billion in the Egyptian Central Bank to help the country stabilize soaring food prices.