Egypt is set to sign legal contracts for Saudi projects worth approximately EGP 360bn in investments, Minister of Investment Ashraf Salman said in press statements.
The projects include three residential communities with investments worth a total of EGP 170bn. The three projects are set to be implemented by Egyptian real estate company Mountain View and the Saudi investment and development company, Sisban Holding.
The legal contracts for a project with investments worth the equivalent of approximately EGP 5.5bn, and which has already been signed with Saudi investor Abdelrahman Al-Sharbatli, is expected to be finalised soon. The project involves the management of international luxury hotels that will be established in Sharm El-Sheikh’s City Stars project.
Moreover, Saudi investors will invest at least EGP 120bn in the South Marina project development, Salman added.
The legal contracts for the two energy sector cooperation agreements that were signed with Saudi Arabia’s Acwa Power Company are also to be finalised soon. The investments for one of the agreements are equal to EGP 64bn, and include capital and funding from other sources or investors.
Saudi Arabia has been a strong supporter of the Egyptian economy since the ouster of former president Mohamed Morsi and his Muslim Brotherhood government in July 2013.
During the Economic Summit that took place in Sharm El-Sheikh in March, Saudi Crown Prince Muqrin bin Abdul Aziz said his country will contribute $4bn to Egypt. Of this amount, a total of $1bn was deposited at the Central Bank of Egypt (CBE) in June.
Following Morsi’s ouster, Saudi Arabia provided Egypt with a $5bn aid package in the form of non-refundable grants, deposits and petroleum products. The Saudi aid was divided into $1bn in cash, a five-year $2bn interest-free deposit at the CBE, and $2bn in the form of petroleum products.
Moreover, in November 2014, the Egyptian government signed three agreements with Saudi Arabia. These agreements would see the latter provide $350m for electricity projects and commodity exports to Egypt, according to former prime minister Ibrahim Mehleb.
Several other deals and agreements were conducted between Egypt and Saudi Arabia, although economics is not the only sector in which there is strong collaboration between the two countries.
Last July, a document entitled the “Declaration of Cairo”, reinforcing the strategic alliance between Egypt and Saudi Arabia, was signed between Egyptian President Abdel Fattah Al-Sisi and Saudi Defence Minister Prince Mohamed Salman Bin Abdul Aziz Al-Saud.
The declaration aims at enhancing mutual cooperation between the two countries on six different levels, notably in the military, investment, trade, politics, culture and media sectors.