19 November 2018 01:11 AM

Economic Relations & Mutual Investments

Monday، 06 November 2017 - 12:00 AM

The economic and trade relations between the two countries witnessed continuous interaction and growth, which has been doubled several times since the 1980s. Saudi investments ranked first among the Arab countries investing in Egypt and the second in the global investments.

On 8/4/2016, International Cooperation Minister Sahar Nasr said that several agreements worth about 25 billion dollars had been signed.

Egypt and Saudi Arabia signed a Memorandum of Understanding (MoU) aimed at establishing a free economic zone in the Sinai Peninsula ,the preparation of feasibility  studies for the establishment of the zone that would include  a seaport to benefit from the promising investment opportunities in this region. In addition to the signing of several agreements with the Saudi Finance Minister and President of the Saudi Fund for Development that  worth about 1.130 billion dollars.This  comes in addition to the endorsement of more agreements on trade worth 1013 billion  dollar.

In 2015, it was agreed on the electric link  project between Egypt and Saudi Arabia , which aims to meet the needs of electric power in Egypt and Saudi Arabia and improve the performance and stability of the network in both countries.

With a sum total of investments exceeding EGP71 billion, Saudi Arabia occupies first place on the list of Arab countries investing in Egypt, second on the list of non-Arab countries. The volume of Egyptian-Saudi inter-trade was estimated at $7.4 billion in 2008.

Mutual Investments:

According to the statement of the General Authority for Investment, the volume of Saudi investments in Egypt amounted to $ 5.777 billion, with 3.557 companies from 1/1/1970 until 31/12/2013.

The industrial sector is ranked first with investments of $ 2 billion, followed by the construction sector  with investment of $ 1 billion. The tourism investments ranked third with $ 933 million, with 268 companies, while investment in the finance sector ranked fourth with 112 companies with $ 693 million, followed by agricultural, service and telecommunications and information technology.

In the context of strengthening these relations, bilateral meetings were held and a number of agreements and memorandums of understanding were signed.

The most prominent Saudi investments in Egypt:

Government investments:

Sumed Company: Saudi Arabia contributes by  15% of the capital of the Arab Petroleum Pipeline Company (SUMED) with USD 400 million.It was established in 1974 to connect Ain Soukhna in the Gulf of Suez with Kerir Port on the Mediterranean Sea.

Petrolube Company: Petrolube Egypt Lubricating Oil Company operates a number of car service stations in some areas of Egypt, especially on highways.

Private Investments:

There are many Saudi banks, insurance companies,  hotels and companies in various fields in Egypt.

Projects under study or implementation:

There are some projects under study and implementation in the areas of a) petrochemicals and cement, b) electricity networking, c) ports services, d) agricultural  development projects and many other fields.

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