Egyptian, Saudi firms sign accords worth $7.7 bn

Cairo, Egypt – (AFP)

Saudi and Egyptian companies signed agreements worth a total of $7.7 billion during a visit to Cairo by the Saudi crown prince, state media in both countries said.

The deals were related to “infrastructure, logistical services, port management, agri-foods, the pharmaceutical industry, fossil fuels and renewable energy, and cybersecurity” and were worth $7.7 billion, Egyptian daily Al-Ahram said.

The Saudi investment ministry said the agreements aimed to “enhance investment and economic cooperation between the two countries”.

Trade between Egypt and the kingdom leapt more than 62 percent last year compared with 2020, reaching $9.1 billion, according to official Egyptian figures.

Egyptians working in Saudi Arabia are an important source of foreign currency, with transfers worth more than $11 billion in the 2020-2021 financial year, up more than 17 percent compared with the previous year.

Egypt, which is struggling with inflation, huge infrastructure spending bills and a currency devaluation, is in talks with the International Monetary Fund for a new loan.

The Arab world’s most populous country, Egypt has a state budget of around $160 billion and is grappling with public debt reaching around 90 percent of gross domestic product.

Saudi Crown Prince Mohammed bin Salman began a two-day visit to Egypt on Monday evening, kicking off a regional tour extending to Jordan and Turkey.

The trip comes weeks ahead of a visit to Saudi Arabia by US President Joe Biden, whose administration has lately sought to repair ties with Riyadh, despite him earlier calling the kingdom a “pariah” state.