Saudi crown prince visits Egypt, signs historic $7.7 billion worth deals
Middle East, News June 22, 2022 No Comments on Saudi crown prince visits Egypt, signs historic $7.7 billion worth dealsSaudi Arabia’s de facto ruler and crown prince Mohammad Bin Salman arrived in Cairo, Egypt on June 21, before heading to Jordan and Turkey.
The Saudi leader Mohammad Bin Salman was welcomed at the airport by Egypt’s President Abdel Fattah el-Sisi. Mohammad Bin Salman’s trip to Egypt comes at a time when Cairo is going through an economic crunch as a knock-off effect of the Russia-Ukraine war. The two leaders share a long history of economic cooperation.
During his visit to Cairo, Mohammad Bin Salman announced economic deals worth $7.7 billion. In total, the two leaders signed 14 deals focusing on renewable energy, fintech, the petroleum industry, and the food industry.
According to a statement from the Egyptian cabinet, Saudi Arabia’s Acwapower and Egyptian Electric Holding Company signed a deal worth $1.5 billion to build wind power plants in Egypt.
Other agreements between the two countries include the development of a multipurpose terminal at Egypt’s Damietta Port and the establishment of a $150 million worth ‘pharmaceutical city’ in Saudi Arabia through a collaboration with Egypt’s Pharco Pharmaceutical.
The post-meeting joint statement stated that Saudi Arabia and Egypt’s joint projects would bring an overall investment of $30 billion into Egypt.
Egypt’s tourism sector, which is country’s one of the main sources of foreign currency, took a huge hit during the COVID-19 pandemic. The Russian invasion of Ukraine also led to unprecedented inflation in Egypt. In order to help Egypt go through the economic crisis, Saudi Arabia deposited $5 billion in Egypt’s central bank in March 2022.
Saudi-led Islamic Trade Finance Cooperation (ITFC) also helped Egypt to finance $3 billion worth of projects in order to import essential commodities.
The Saudi crown prince also visited Jordan where he met the country’s monarch, King Abdullah II. Jordan is a close regional ally of Saudi Arabia.
Mohammad Bin Salman’s three-leg visit also includes Turkey where he would meet President Recep, Tayyip Erdogan. The meeting between the two leaders would mark a milestone to repair the historically turbulent ties between the two countries. Turkey-Saudi relations took a hit in 2018 after the killing of journalist Jamal Khashoggi in Saudi Arabia’s consulate in Istanbul.
The crown prince’s visit to the Middle East is aimed to coordinate the position of his regional allies on key issues before the joint summit with U.S. President Joe Biden takes place in Jeddah next month. The U.S. President would make his first trip to Saudi Arabia next month where he would participate in the Gulf Cooperation Council (GCC) summit.
According to a statement released by the White House, Biden would also visit Israel and West Bank “to consult with Palestinian Authority and to confirm his strong support for a two-state solution.”
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