Egypt and Saudi Arabia have signed 14 investment deals worth $7.7 billion (EGP 145 billion) state-run Middle East News Agency (MENA) reported Tuesday, as Crown Prince Mohammed bin Salman is visiting the North African nation on his first tour outside the GCC region.
The new round of investments covers several sectors including renewable energy, green hydrogen, pharmaceuticals and e-commerce. The deals signed include an agreement between Saudi Arabia’s ACWA Power and the Egyptian Electricity Holding Company to produce and transmit 1100 MW of wind power.
Other deals involved the development of the multi-purpose terminal at Egypt’s Damietta port and the establishment of a $150 million ‘pharmaceutical city’ by Egypt’s Pharco Pharmaceuticals in Saudi Arabia.
Saudi Arabia is among the Gulf Arab states that pledged more than $20 billion in deposits and investments to boost Egypt’s economy as the Arab world’s populous state has been ramping up efforts to fight inflation, including the central bank’s decisions to raise its key interest rate and devalue the local currency.
The Egyptian government is reportedly in talks with the International Monetary Fund (IMF) on possible support as part of the country’s broader strategies to hedge its economy against the fallout from Russia’s war in Ukraine. The IMF said in March that a set of macroeconomic and structural policy measures would mitigate the impact of Russia’s war in Ukraine on the Egyptian economy while preserving the country’s resilience and medium-term growth prospects.
Egypt received $5 billion from Saudi Arabia in March and the Gulf state’s wealth fund is expected to invest additional funds in the country. In April, Abu Dhabi wealth fund ADQ acquired stakes in five publicly-traded Egyptian companies including the country’s biggest private bank, Commercial International Bank and electronic payments provider, Fawry, for $1.8 billion.
Qatar also signed deals with Egypt, pledging $5 billion worth of investment in the North African country soon.
