Saudi Arabia and Egypt strengthen trade and investment, call for ceasefire in Gaza and Lebanon
- In Reports
- 05:04 PM, Oct 16, 2024
- Myind Staff
On Tuesday, Saudi Arabia's Crown Prince Mohammed bin Salman and Egypt's President Abdel Fattah al-Sisi met in Cairo to strengthen trade and investment ties. During their talks, they urged for a ceasefire in Gaza and Lebanon amid ongoing regional tensions.
According to Egypt's presidency, the two leaders signed an agreement to promote and safeguard mutual investments and established a supreme coordination council to enhance cooperation between Riyadh and Cairo. This visit comes as speculation grows about potential Saudi investments in Egypt, which has seen a surge in external funding this year, including a record $35 billion deal with the UAE's sovereign fund, ADQ.
Crown Prince Mohammed bin Salman, also known as MbS, last visited Egypt in 2022. Saudi Arabia, which has historically provided financial assistance to Egypt, has shifted its approach toward investment rather than direct aid.
The presidency's statement highlighted that the leaders discussed ways to develop economic partnerships, particularly in investment, trade, and integration in the energy, transport, and tourism sectors.
In addition to economic matters, the leaders addressed regional issues, specifically the situations in Gaza and Lebanon. They called for immediate steps toward calm, which included a ceasefire in both regions.
Following the talks, Egypt's sovereign dollar bonds saw a rally, with longer-dated maturities performing particularly well. By early afternoon, the 2059 maturity bond gained 1.73 cents, reaching a bid of 77.80 cents on the dollar. Last month, Egypt's Prime Minister announced that Saudi Arabia plans to invest $5 billion in Egypt, separate from funds deposited in the Egyptian central bank. Potential investment sites include two tourism development projects along Egypt's Red Sea coast and in southern Sinai, both located across from Saudi Arabia.
Egypt is actively seeking substantial investments to address a prolonged economic crisis marked by record inflation, increasing debt, and significant currency devaluations over the past two years.
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