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ارشيف

Rearrange : economic file of the Saudi Arabia ‘s visit to Egypt

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Saudi King Salman bin Abdul Aziz ‘s visit to Egypt a few days ago formed a distinguishing feature in relations between the two countries, and it has gained exceptional importance on both political and economic levels , in addition to being a support for the cooperation relations between the two countries.
The economic file has gained during the visit of exceptional importance, embodied by signing major agreements and cooperation programs between the two sides.
Here we mention the most important thing that has been done on the economic level during the visit of King Salman to Cairo :
– To provide $ 2 billion as an investment agreement in the projects of energy and of the Suez Canal center and the development of the Sinai Peninsula from the Saudi Fund for development .
– $ 200 million non – refundable grant.
– the establishment of an investment fund worth 3.7 billion Saudi riyals
– the establishment of the first university in South Sinai , under the name of ” King Salman University ” of $ 250 million.
– the construction of nine residential complex worth $ 120 million, according to an Egyptian official said earlier.
– the signature of agreement for financing Egypt ‘s needs of petroleum for five years by about $ 20 billion, at an interest rate of 2% agreement.
– the agreements included also to finance the Cairo West power Station project worth $ 100 million, as well as generating steam unit vigorously with 650 megawatts, and the project to develop the kasr El Aini Hospital in Cairo worth $ 120 million.
– To provide a loan for the development of Sinai $ 1.5 billion.
– the size of Saudi investments in Egypt is more than $25 billion.
– the cooperation in other aspects such as; education, health, housing and infrastructure.
– the Egyptian government and Saudi Arabia have signed 24 agreement, and nine memorandums of understanding and three programs for cooperation.
– building a bridge between Egypt and Saudi Arabia through the Strait of Tiran.
The conomists believe that the visit of King Salman to Egypt is a historic visit to establish relations in a sustainable and deep rooted between the two countries that have included many of the messages in the regional environment, not to mention that Saudi Arabia ‘s support for Egypt is one of the main pillars of the stability of the economy of Egypt.
the Saudi support for Egypt is an extension of a series of support that exceeded $ 9 billion since June 30 2013, and this aid, grants ranged from direct support to the Egyptian treasury, and support for the development projects, infrastructure, and various economic sectors, and the size of trade exchange between Riyadh and Cairo rose to $ 6.3 billion during 2015, compared with $ 6.2 billion in 2014.
It is noteworthy Saudi Arabia undertook to meet Egypt ‘s needs of oil since December 2015, noting that the Saudi Arabia ‘s King Salman bin Abdul Aziz issued an order with the help of Egypt to meet oil needs over the next five years and to increase Saudi investments to reach to more than $ 8 billion, and support traffic movement in the Suez Canal by the Saudi ships.
on the other hand the American Center «Stratfor» for strategic and security Studies , in the analysis of it shed light on Friday to build a bridge between Egypt and Saudi Arabia, and the Cairo declaration the dependency ” of Tiran and Sanafir” islands for Riyadh.
the center explained that the bridge connecting Egypt and Saudi Arabia , may provide the time and the cost of transit and transportation of personnel and equipment between the two countries, pointing out that the declared construction purpose is to provide jobs and trade facilitation process.
in spite of the controversy that accompanied the Cairo declaration for the dependency ” of Tiran and Sanafir” islands for Riyadh , talk about the sale of the two islands to Saudi Arabia, but there are those who believe that the visit of King Salman to Egypt marks the beginning stage of re arrangement of the Arab house , in addition to the political factor , the the economic factor is one of Saudi foreign policy tools to support Arab countries that suffer from economic instability, especially under the strategic risks and the critical situation experienced by the region, which brings us to the conclusion that the future will see more action within the Arab house, in order to face serious challenges, and these transitions are led by Saudi Arabia, which is what we will see evident in the coming days.

Rawabet Research and Strategic Studies Center

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