Saudi Arabia has provided billions of dollars in financial support since Egyptian President Abdel Fattah al-Sisi came to power, and the new round of investment comes as Cairo struggles with the economic repercussions of war in Ukraine .
Even before the war in Ukraine drove up commodity prices, affected tourism revenues and prompted investors to pull out of emerging markets, Egypt’s current account and budget deficit were a cause for concern, according to bankers.
The deals signed on Tuesday include a $1.5 billion deal between Saudi-based Acwapower and the Egyptian Electricity Holding Company to build a wind power plant, according to a statement from the Egyptian cabinet.
Other agreements on renewable energies have been signed, as well as agreements concerning petroleum products, food and financial technologies.
Other agreements relate to the development of the multi-purpose terminal at the Egyptian port of Damietta, according to the authority’s press release, and the establishment of a $150 million “pharmaceutical city” by the Egyptian company Pharco Pharmaceuticals in Saudi Arabia, said the president of the company Alsharq TV.
In March, Saudi Arabia deposited $5 billion in Egypt’s central bank and the Egyptian government said cooperation with the Saudi sovereign wealth fund would result in $10 billion in investments.
The Saudi Arabia-based ITFC has provided Egypt with $3 billion in new financing for raw material imports, its CEO told Reuters last week.
The prince arrived in Egypt on Monday evening, marking the start of his first tour outside the Gulf region in more than three years. He will also visit Jordan and Turkey.
Sources said MbS and Egyptian President Abdel Fattah al-Sisi would discuss issues such as the impact of the war in Ukraine and the alignment of Saudi and Egyptian positions ahead of US President Joe Biden’s trip to the region in mid -July.