In a high-level meeting on Tuesday, Saudi Arabia’s Crown Prince Mohammed bin Salman and Egypt’s President Abdel Fattah al-Sisi pledged to enhance trade and investment ties between their nations. The talks, held in Cairo, also focused on regional tensions, with both leaders calling for a ceasefire in Gaza and Lebanon.
Egypt’s presidency confirmed that the two countries signed an agreement to protect and promote mutual investments and established a supreme coordination council to oversee deeper economic cooperation. This meeting comes amid speculation of increased Saudi investment in Egypt, following a significant $35 billion deal earlier this year between Egypt and the UAE’s ADQ sovereign fund.
The talks also underscored Saudi Arabia’s shift from offering direct financial aid to Egypt toward fostering investment-driven support. Economic collaboration in energy, transport, and tourism was a focal point, as both nations aim to strengthen ties in these critical sectors.
Additionally, the leaders discussed the ongoing conflicts in Gaza and Lebanon, urging for steps toward peace and a ceasefire in both regions. Egypt’s sovereign bonds responded positively, with long-term bonds seeing gains by early afternoon.
The Egyptian government is currently seeking large-scale investments to combat an ongoing economic crisis, characterized by record inflation, a growing debt burden, and multiple currency devaluations over the past two years. Saudi Arabia’s potential $5 billion investment is expected to focus on tourism developments along Egypt’s Red Sea and Sinai Peninsula regions, which lie opposite the Saudi coast.
