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 19/9/2019, a delegation of the Federation of Egyptian Industries (FEI), under its Chairman Mohamed el Sweedy, and Saudi businessmen agreed that providing access to information between the Saudi and Egyptian sides is an essential and vital issue for giving impetus to cooperation between the business communities in both countries. This came during a meeting hosted by Chairman of the Council of Saudi Chambers (CSC) Sami bin Abdullah al Obaidi at the premises of the council in Riyadh. During the meeting, the attendees reached an agreement under which the Egyptian side will provide the Saudi one with all updates regarding legislation and measures governing the environment of business and investment in Egypt. Also, Egypt will exchange with Saudi Arabia lists of commodities required by their local markets and work together to maximize the added value of goods and promote manufacturing in Egypt.
Egypt's exports to Saudi Arabia during 2017 amounted to $1.5 billion. Saudi Arabia occupies the fourth position annually in terms of the high value of Egyptian exports. Egypt's main exports to Saudi Arabia during 2017 were exports of fruits, vegetables, machines, electrical appliances and pharmaceutical products as well as iron and steel. The Kingdom also accounts for 6% of the total Egyptian exports annually. The total volume of trade between the two countries reached $ 5.577 billion, of which $ 4.034 billion are imports.
On March 5, 2018, President Abdul Fattah Al Sisi and Prince Mohammed bin Salman, Crown Prince of Saudi Arabia, Deputy Prime Minister and Minister of Defense signed a number of bilateral agreements in various fields including:
1. Environment Minister KhaledFahmi and his Saudi counterpart Abdul Rahman bin Abdul Mohsen Al-Fadhlysigned a deal on environment protection and reducing pollution.
2. Public Investment Fund of Saudi Arabia and Egypt’s Investment and International Cooperationsigned an amended deal on establishing an Egyptian-Saudi investment fund. The agreement was signed by Investment Minister Sahar Nasr and Saudi State Minister Essam bin Saad bin Saeed .
3. The president and the Saudi crown prince witnessed inking a memorandum of understanding between Minister of Investment and International Cooperation and the Saudi Public Investment Fund on activating the Egyptian-Saudi investment fund. Investment Minister Sahar Nasr represented the Egyptian side while Minister of State Essam bin Saad bin Saeed represented the Saudi side .
4. Also, an agreement of an executive program of cooperation to promote investment between the General Authority for Investment and Free Zones and the Saudi Arabian General Investment Authority was signed by Minister of Investment Sahar Nasr and Saudi Minister of Commerce and Investment Majed Bin Abdullah Al Kassabi.
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.
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:
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.
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.