The General Authority for Investment and Free Zones of Egypt said in a statement on Tuesday that Saudi Arabia’s de facto ruler Crown Prince Mohammed bin Salman inked 14 deals worth $7.7 billion during his visit to Cairo.
Since Egypt’s President Abdel Fattah al-Sisi took office, Saudi Arabia has donated billions of dollars in financial aid, and the fresh round of investments comes as Cairo grapples with the economic fallout from the Ukraine conflict.
Concerns about Egypt’s current account and budget deficit existed even before the Ukraine war pushed up commodity prices, reduced tourism receipts, and led investors to flee emerging markets, according to bankers.
A $1.5 billion agreement between Saudi Arabia’s Acwapower and Egypt’s Electricity Holding Company to build a wind power facility was among the agreements signed on Tuesday, according to an Egyptian government statement.
More renewable energy agreements, as well as accords in petroleum products, food, and fintech, were struck.
According to the authority’s statement, other accords included the creation of a multi-purpose terminal at Egypt’s Damietta port and the establishment of a $150 million “pharmaceutical city” in Saudi Arabia by Egypt’s Pharco Pharmaceuticals, according to the company’s chairman on Alsharq TV.
Saudi Arabia deposited $5 billion in Egypt’s central bank in March, and the Egyptian government has stated that the cooperation with the sovereign wealth fund of Saudi Arabia will result in $10 billion worth of investment.