Saudi Crown Prince Mohammed bin Salman and Egyptian President Abdel Fattah El-Sisi recently met in Cairo to discuss ways to strengthen their countries’ fraternal relations and address common regional issues. The two leaders witnessed the signing of the minutes to create the Saudi-Egyptian Supreme Coordination Council and an agreement to promote and protect mutual investments between the two nations. The visit of the Crown Prince, in line with the directives of Custodian of the Two Holy Mosques King Salman, is expected to boost joint investments in crucial sectors.
Over the past 10 years, Saudi Arabia has invested approximately $6.1 billion in the Egyptian economy, with a significant increase in the last fiscal year of 2022-23, reaching about $2.4 billion. This surge represents a 390 percent increase compared to the previous year, making up 10 percent of global investments in the same year, amounting to $23 billion. In the first 9 months of the fiscal year 2023/2024, the flow of foreign investments from Saudi Arabia to Egypt totaled $511.3 million, bringing the volume of cumulative Saudi investments in Egypt to approximately $34 billion through 6,830 companies.
Saudi Arabia, as the largest Arab economy, and Egypt, as the third-largest economy, have historically strong relations that have been evident in the two countries’ positions on various issues. The value of Saudi financial deposits with the Central Bank of Egypt is estimated at $10.3 billion, underscoring the depth of economic ties between the two nations. The Crown Prince’s visit to Cairo and the signing of agreements to enhance collaboration in trade and investment signify both countries’ commitment to further strengthen their economic partnership.
The expanded discussion session during the meeting focused on enhancing joint investment and developing trade exchange between Saudi Arabia and Egypt, reflecting a mutual interest in deepening economic ties. Through the creation of the Saudi-Egyptian Supreme Coordination Council, the two countries aim to facilitate closer cooperation on various issues of common interest, paving the way for increased bilateral investments in key sectors. The visit of the Saudi Crown Prince to Egypt exemplifies a commitment to further enhancing economic relations and fostering growth opportunities for both nations.
The significant increase in Saudi investments in the Egyptian economy underscores the confidence that Saudi Arabia has in Egypt’s economic prospects and the potential for mutually beneficial partnerships. The flow of foreign investments from Saudi Arabia to Egypt continues to strengthen, with a focus on vital sectors that can drive economic growth and create job opportunities in both countries. The signing of agreements to promote and protect mutual investments signals a long-term commitment by both nations to deepen economic cooperation and capitalize on the existing economic synergies between them.
Overall, the recent meeting between the Saudi Crown Prince and Egyptian President in Cairo marks a milestone in the ongoing efforts to enhance economic cooperation between the two countries. With a focus on strengthening bilateral investments and trade relations, Saudi Arabia and Egypt are poised to leverage their historical ties and shared interests to drive economic growth and prosperity for their people. The establishment of the Saudi-Egyptian Supreme Coordination Council signals a new chapter in the economic partnership between the two nations, setting the stage for increased collaboration and mutual benefit in the years to come.
