In a landmark announcement, Saudi Crown Prince and Prime Minister Mohammed bin Salman revealed a $5 billion investment by the Saudi Public Investment Fund in Egypt. This significant step marks the first phase of an ambitious initiative to bolster economic collaboration between the two nations. The announcement was made during a high-profile meeting in Riyadh with Egyptian Prime Minister Mostafa Madbouly and top officials from both countries.
Crown Prince Mohammed bin Salman expressed his enthusiasm for visiting Egypt soon and meeting President El-Sisi. He emphasized the importance of resolving trade disputes to pave the way for further Saudi investments. Praising the contributions of Egyptian workers to Saudi Arabia’s Vision 2030, the Crown Prince highlighted ongoing efforts to address regional crises and reaffirmed a commitment to renewable energy projects in Egypt.
Prime Minister Madbouly conveyed President El-Sisi’s greetings and lauded the progress of Saudi Vision 2030, recognizing the Crown Prince’s pivotal role.
Dr. Madbouly announced earlier that the governments of Egypt and Saudi Arabia have been working on an agreement to safeguard and promote mutual investments. This comes in response to the growing number of Egyptian investors in Saudi Arabia and the already significant Saudi investments in Egypt. He stated that the agreement, designed to protect and encourage Saudi investments in Egypt, has been finalized and is currently undergoing final adjustments for legislative approval. He anticipates that the agreement will be enacted within the next two months. Khalid Al-Falih, the Saudi Minister of Investment, confirmed that the final touches on the investment protection agreement are nearly complete and it will soon be presented to the Saudi government and the Shura Council.
Dr. Madbouly further noted the formation of a special unit within the Egyptian Cabinet to tackle long-standing issues faced by Saudi investors, 85% of which have been resolved, with the remaining 15% expected to be resolved by the end of the year.
In a related development, the Urban Communities Authority approved the allocation of 500 acres east of Cairo to the Saudi Dallah Al Baraka Group. This land will be developed in partnership with Egyptian real estate developers to establish two integrated residential projects, further solidifying the economic partnership between the two nations.
The extended economic ties between Egypt and Saudi Arabia are also evident in the substantial volume of trade, tourism, and cross-border investments between the two countries.
Tourism between Egypt and Saudi Arabia has seen remarkable growth, with millions of Saudi tourists visiting Egypt annually, and vice versa. This vibrant exchange has strengthened people-to-people connections and cultural ties.
Trade volume between Egypt and Saudi Arabia has surged over the years. According to recent statistics, bilateral trade between the two countries exceeds $7 billion annually, encompassing a wide range of sectors, including agriculture, petrochemicals, and consumer goods.
Egyptian investments in Saudi Arabia are also on the rise. Recent reports estimate Egyptian investments in Saudi Arabia to be around $2.5 billion, with significant contributions in sectors such as construction, manufacturing, and services.
Conversely, Saudi investments in Egypt are even more substantial, with Saudi entities investing over $7.5 billion in various Egyptian sectors, including real estate, tourism, and renewable energy. This mutual investment underscores the strategic economic partnership and the importance of fostering a stable and conducive business environment.
Economic solidarity between Egypt and Saudi Arabia is crucial for regional stability and development. Both nations play pivotal roles in Arab and Middle Eastern geopolitics, and their collaboration on economic fronts is a testament to their commitment to regional prosperity.
In conclusion, these developments highlight the robust and expanding economic relationship between Egypt and Saudi Arabia. Through strategic investments, trade, and tourism, both countries are poised to achieve unprecedented growth and cooperation, solidifying their positions as key players in the region.