10/15/2024–|Last updated: 10/15/202406:59 PM (Mecca time)
Saudi Crown Prince Mohammed bin Salman arrived in Cairo, today, Tuesday, on a visit aimed at strengthening economic and trade relations between Saudi Arabia and Egypt, in addition to discussing regional issues related to the situations in Lebanon and the Gaza Strip, according to Egyptian diplomatic sources.
The Saudi News Agency (SPA) reported that the Saudi Crown Prince and Egyptian President Abdel Fattah El-Sisi will discuss ways to strengthen bilateral relations and issues of common interest.
This visit comes at a time when Egypt is facing a stifling economic crisis, which increases the importance of Gulf investments to support the country’s economy, and the Crown Prince’s last official visit to Egypt was in 2022.
Saudi investments in Egypt
This visit comes amid speculation about pumping new Saudi investments into Egypt, as the country has recently received large inflows of external financing, including a huge deal worth $35 billion with the Emirati company ADQ, one of Abu Dhabi’s sovereign wealth funds. , according to what the agency reported.
Financial data showed that Egypt’s dollar-denominated sovereign bonds witnessed an increase after the announcement of the visit, as long-term bonds due 2059 rose by 1.73 cents to record 77.8 cents to the dollar, which reflects the markets’ confidence in the ability of these investments to support the Egyptian economy.
Investment instead of aid
Since Egyptian President Abdel Fattah El-Sisi took power, Saudi Arabia has provided significant financial support to Egypt, but in recent years the Kingdom has begun to indicate a change in its strategy from providing direct financial aid to enhancing investments.
According to statements by Egyptian Prime Minister Mostafa Madbouly last September, Saudi Arabia plans to invest $5 billion in Egypt, an amount separate from the deposits that the Kingdom made to the Central Bank of Egypt.
Egypt seeks to attract large Gulf investments, and Saudi Arabia is focusing on tourism development sites on the Red Sea coast and in the southern Sinai Peninsula, two areas that receive special attention due to their distinguished location opposite Saudi Arabia.
These investments come at a critical time for Egypt, which is facing record inflation, high debt, and a sharp decline in the value of the Egyptian pound.
According to TradeWeb data, Egypt’s sovereign dollar bonds rose significantly after the visit was announced, with long-term bonds recording the largest gains. Bonds due in 2059 increased by 1.71 cents to 77.78 cents on the dollar.
