JEDDAH: Egypt’s parliament has approved a bilateral investment protection agreement with Saudi Arabia, aiming to boost capital inflows, create jobs, and strengthen economic ties between the two nations.
The agreement is part of a series of economic deals signed during Saudi Crown Prince Mohammed bin Salman’s October visit to the North African country, which also established the Saudi-Egyptian Supreme Coordination Council.
Both the crown prince and Egyptian President Abdel Fattah El-Sisi attended the initial signing, according to the country’s Parliament News Agency.
A report from a joint committee of Egyptian parliamentary bodies described the agreement as a key step toward enhancing economic cooperation, fostering investment opportunities, and promoting sustainable development between the two countries.
It also highlighted efforts to facilitate technology transfer, create jobs, and develop human resources through mutual investments.
“The parliamentary report also indicated that economic relations between the two countries have witnessed remarkable development in recent years, supported by a strategic partnership and joint investment projects that contribute to strengthening bilateral cooperation in various sectors, reflecting the depth of the historical relations between the two brotherly countries,” the news agency stated.
The agreement is backed by leaders, ministers, ambassadors from both nations, the Federation of Saudi Chambers of Commerce, and the Saudi-Egyptian Business Council, according to an FSC post on X.
Economic ties between the two nations have strengthened notably in recent years. The joint committee report indicated that the value of trade exchange between Egypt and Saudi Arabia increased to $6.5 billion during the first 8 months of 2024, compared to $4.9 billion during the same period in 2023, an increase of 32.7 percent, according to the Egyptian Central Agency for Public Mobilization and Statistics.
The deal supports Saudi Arabia’s Vision 2030 — an economic diversification strategy aimed at reducing reliance on oil revenues by increasing non-oil exports and strengthening regional trade alliances, including with Egypt.
In March 2022, Saudi Arabia deposited $5 billion into the Central Bank of Egypt, bringing total deposits from the Kingdom to $10.3 billion. The funds helped stabilize Egypt’s foreign exchange reserves after foreign investor withdrawals spiked following the war in Ukraine.
Saudi Arabia’s Ministry of Investment issued 789 licenses to Egyptian companies in the second quarter of 2024 — a 71 percent rise from the same period in 2023 — making the country the top recipient of the permits from the Kingdom.
