Aabar Investments, a subsidiary of Abu Dhabi’s sovereign wealth fund International Petroleum Investment Company (Ipic), has acquired a 5.1 per cent stake in the Egyptian real estate company Palm Hills Developments.

As a minority shareholder, Aabar will support Palm Hills’ expansion by making use its existing portfolio of companies.

Palm Hills Developments has a market capital of approximately E£5.6bn ($784m) and is listed on the Egyptian stock exchange.

In an official statement, Yaseen Mansour, chairman of Palm Hills, said the deal demonstrates how the Egyptian economy has “regained the confidence of international institutions”.  

The Egyptian company was set up in 2005 and develops residential as well as commercial and hospitality developments.

Earlier in 2014, US private equity firm Ripplewood acquired a 2.3 per cent stake in the company.

Aabar’s investment marks the continuation of UAE support for Egypt’s economy and the government led by president Abdul Fattah al-Sisi.

The UAE, along with other Gulf countries, poured billions of dollars of financial aid into Egypt after former president Mohamed Mursi was ousted from power in 2013.

Arabtec, in which Aabar has a significant stake, signed a multi-billion dollar agreement with Egypt earlier this year, to develop low-cost housing across the country.