In a high-profile meeting in Cairo on Tuesday, Crown Prince Mohammed bin Salman of Saudi Arabia and Egypt’s President Abdel Fattah al-Sisi cemented plans to bolster their countries’ trade and investment ties. They also issued a collective plea for peace, urging a halt to hostilities in Gaza and Lebanon.
The Egyptian presidency revealed that the duo inked a pact designed to boost and safeguard shared investments. They also witnessed the creation of a supreme coordination council, aiming to tighten bonds between Riyadh and Cairo.
This visit unfolds amid whispers of promising Saudi investments in Egypt. The nation experienced a significant financial boost this year, notably from a colossal $35 billion agreement with the UAE’s sovereign fund ADQ.
Nicknamed MbS, the crown prince’s prior official trip to Egypt was in 2022. While Saudi Arabia previously gave financial backing to Sisi’s regime, it now seems to pivot towards an investment-forward approach over direct monetary assistance.
The leaders deliberated on enhancing economic collaboration, focusing on fields such as energy, transportation, and tourism. Both sides are determined to delve deeper into economic synergy, emphasizing trade and investment.
Additionally, the regional landscape, particularly the tense climates in Gaza and Lebanon, featured prominently in their discussions. The presidency stated that they pressed for initiatives that entail establishing calm, including ceasefires in the troubled areas.
Egypt’s sovereign dollar bonds surged by Tuesday afternoon, with long-duration bonds seeing the most appreciation. By 1128 GMT, the 2059 maturity spiked by 1.73 cents, bidding at 77.80 cents on the dollar.
The Egyptian prime minister hinted last month at Saudi Arabia’s $5 billion investment plans in Egypt, separate from the funds parked in the Egyptian central bank by the Gulf nation.
Investment targets might include tourism projects on Egypt’s Red Sea coast and the southern Sinai Peninsula, directly facing Saudi Arabia’s shores.
Faced with an enduring economic predicament, including rampant inflation, escalating debt, and severe currency depreciations over recent years, Egypt is eagerly courting substantial investments.
Reported by Mohamed Waly, with additional coverage by Libby George, Mohamed Hendawy, and Jaidaa Taha; Article penned by Aidan Lewis; Edited by Hugh Lawson and William Maclean.
Edited by: Ali Musa
alimusa@axadletimes.com
Axadle international–Monitoring
