Egypt Strengthen Ties With Saudi Arabia Through 14 Trade Agreements
Egypt–Saudi Arabia is moving closer to building strong economic ties with Egypt which has been reeling under pressure due to jammed lines of imports. They have now signed 14 agreements valued at $7.7 billion during a recent visit by Saudi Crown Prince Mohammed bin Salman. Apparently, the visit seems to have coincided with the decisions to sign the deals as well.
Apart from e-commerce, the deals will be covering renewable energy, green hydrogen and pharmaceuticals too. In the past, the investments in Egypt’s private sector has exceeded $35 billion, according to the Head of Saudi Business Council Bandr Al Amri.
Egypt remains heavily dependent on imports. In the current scenario, Egyptian investors are also being invited into the Kingdom to set up shop. The Saudi economy has started to diversify into private sector investments as it has been trying to get its economy to stop depending on exports earnings from fossil fuels.
The Saudi prince also has plans to visit Jordan and Turkey during his tour. It has been confirmed that the trade volume between Saudi Arabia and Egypt reached 54 billion Saudi Riyals ($14.40) in 2021, with an 87 per cent increase from 2020, said the Federation of Saudi Chambers, an umbrella organisation representing the kingdom’s business community in all sectors. Further, it is worth noting that the rich Middle Eastern nation has been doing business with Egypt for a long time and has already signed more than 160 bilateral agreements over the years.
In March, Saudi Arabia deposited $5 billion in the Egypt’s central bank and the Egyptian government has said that cooperation with the Saudi sovereign wealth fund will result in $10 billion in investments. The Saudi-based ITFC has provided Egypt with $3 billion in new financing for commodity imports, its CEO told Reuters last week.