Saudi Crown Prince Mohammed bin Salman is received by Egyptian President Abdel Fattah al-Sisi upon his arrival in Cairo, Egypt, June 20, 2022. Saudi Press Agency/Handout via REUTERS

CAIRO, June 21 (Reuters) – Egypt and Saudi Arabia have signed 14 agreements valued at $7.7 billion during a visit to Cairo by Saudi Arabia’s de facto ruler Crown Prince Mohammed bin Salman, Egypt’s General Authority for Investment and Free Zones said in a statement on Tuesday.

Saudi Arabia has provided billions of dollars in financial support since Egypt’s President Abdel Fattah al-Sisi came to power, and the new round of investments comes as Cairo struggles with the economic knock-on effects of the Ukraine war.

Saudi Crown Prince Mohammed bin Salman is received by Egyptian President Abdel Fattah al-Sisi upon his arrival in Cairo, Egypt, June 20, 2022. Saudi Press Agency/Handout via REUTERS

Even before the Ukraine war hiked commodity prices, hit tourism revenues and prompted investors to exit emerging markets, there were concerns over Egypt’s current account and budget deficit, bankers say.

Deals signed on Tuesday included a $1.5 billion agreement between Saudi Arabia’s Acwapower (2082.SE) and the Egyptian Electricity Holding Company to build a wind power plant, an Egyptian cabinet statement said

More renewable energy agreements were signed, as well as deals in involving petroleum products, food and fintech.

Saudi Crown Prince Mohammed bin Salman meets Egyptian President Abdel Fattah al-Sisi upon his arrival in Cairo, Egypt, June 20, 2022. Saudi Press Agency/Handout via REUTERS

Other deals involved the development of the multi-purpose terminal at Egypt’s Damietta port, the authority’s statement said, and the establishment of a $150 million “pharmaceutical city” by Egypt’s Pharco Pharmaceuticals in Saudi Arabia, the company’s chairman told Alsharq TV.

In March, Saudi Arabia deposited $5 billion in the Egypt’s central bank and the Egyptian government has said that cooperation with the Saudi sovereign wealth fund will result in $10 billion in investments. read more

The Saudi-based ITFC has provided Egypt with $3 billion in new financing for commodity imports, its CEO told Reuters last week. read more

The prince arrived in Egypt on Monday night, marking the beginning of his first tour outside the Gulf region in over three years and will also visit Jordan and Turkey. read more

Sources have said MbS and Egyptian President Abdel Fattah al-Sisi would discuss issues including the impact of the Ukraine war and alignment of the Saudi and Egyptian positions ahead of U.S. President Joe Biden’s trip to the region in mid-July. read more

Reporting by Ahmed Ismail, Momen Atallah, Moataz Mohamed and Yomna Ehab; writing by Nafisa Eltahir; editing by Catherine Evans and David Evans

Our Standards: The Thomson Reuters Trust Principles.

Source: Reuters

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