Egypt, Saudi Arabia agree on $15B investment fund

Saudi King Salman and Egyptian President el Sisi agree to sign $15B investment fund

Photo by: AFP
Photo by: AFP

Egyptian President Abdel Fattah el Sissi (R), sits with Saudi Arabia's King Salman in Cairo on April 8, 2016

King Salman of Saudi Arabia and Egyptian President Abdel Fattah el Sisi signed an agreement late on Saturday to set up a $15 billion investment fund among other investment agreements.

After announcing on Friday that a bridge will be built linking Saudi Arabia to Egypt across the Red Sea, the heads of state met at the Abdeen Palace in Cairo to discuss a set of agreements in which Egypt hopes will help boost its battered economy.

Egypt has struggled to develop an economic growth since the 2011 uprising, which caused political instability that scared off tourists and foreign investors.

The two nations agreed "to set up a Saudi-Egyptian investment fund with a capital of 60 billion Saudi riyals [$15 billion]," said an official announcing the latest agreements during a live Egyptian state television broadcast.

More than a dozen other accords, including a memorandum of understanding to set up an industrial zone in Egypt, were also announced.

A statement from the presidency said the two countries also signed agreements to develop a 2250 Megawatt electricity plant with a cost of $2.2 billion, set up agriculture complexes in Sinai and develop a canal to transfer water.

It also said a company was set up to develop 6 square kilometres of the industrial zone around Egypt's Suez Canal - worth $3.3 billion, without giving further details.

Egypt is aiming for direct foreign investment of around $8-$10 billion in 2015/16.

TRTWorld and agencies