Saudi Arabia Pledges $5 Billion Investment in Egypt Amid Economic Cooperation
On October 16, 2024, Saudi Arabia’s Crown Prince Mohammed bin Salman and Egypt’s President Abdel Fattah al-Sisi met in Cairo to strengthen economic ties.
The leaders signed agreements to protect mutual investments and form a supreme coordination council between their countries.
Egypt has faced economic challenges, including high inflation and currency devaluations. In response, the country has sought foreign investments to stabilize its economy.
Saudi Arabia has pledged to invest $5 billion in Egypt, as announced by Egypt’s Prime Minister last month.
Currently, Saudi investments in Egypt total approximately 127 billion riyals ($33.8 billion). There are 805 Saudi companies operating in Egypt, and trade between the countries reached $9.1 billion in 2023.
Potential investment targets include tourism developments on Egypt’s Red Sea coast and in the southern Sinai. Other sectors that may benefit include energy, transportation, and infrastructure projects.
Saudi-Egyptian Partnership Strengthens
This agreement marks a shift in Saudi Arabia’s approach, focusing on investment-based cooperation rather than direct aid. It aligns with Saudi Arabia’s Vision 2030, which aims to diversify the Kingdom’s economy and increase global investments.
The leaders discussed economic partnerships in investment, trade, and integration in energy, transport, and tourism sectors. They also addressed regional issues, calling for steps to achieve calm in Gaza and Lebanon, including a ceasefire.
Egypt’s sovereign dollar bonds responded positively to the news, with longer-dated maturities gaining the most. The 2059 maturity added 1.73 cents to bid at 77.80 cents on the dollar.
Saudi Arabia praised the role of Egyptian labor in the Kingdom and expects an increase in these numbers. The countries also discussed Red Sea navigation security and the increasing number of migrants and refugees to Egypt.
This cooperation comes as Egypt secured a $35 billion deal with UAE sovereign fund ADQ earlier this year. The strengthened ties between Saudi Arabia and Egypt are expected to benefit both countries, potentially leading to increased trade, job creation, and economic growth.
In short, this partnership could also contribute to greater regional stability and cooperation in the Middle East.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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