CAIRO (Reuters) – Saudi Arabian Crown Prince Mohammed bin Salman is visiting Cairo on Tuesday to discuss trade and investment as well as the crises in Lebanon and Gaza with Egypt’s President Abdel Fattah al-Sisi, Egyptian diplomatic sources said.
The visit comes amid speculation about potential Saudi investments in Egypt, which has received a major influx of external financing this year including a record $35 billion deal with UAE sovereign fund ADQ.
The crown prince, known as MbS, made his last official visit to Egypt in 2022. Saudi Arabia, which has provided financial support to Sisi’s Egypt in the past, later indicated it was shifting towards investing rather than providing direct aid to allies.
Egypt’s sovereign dollar bonds rallied by early afternoon on Tuesday, with longer-dated maturities gaining the most. The 2059 maturity added 1.73 cents by 1128 GMT to bid at 77.80 cents on the dollar.
Egypt’s prime minister said last month that Saudi Arabia was planning to invest $5 billion in Egypt, independently from funds the Gulf state has deposited in the Egyptian central bank.
Possible targets of investment include two sites for tourism developments on Egypt’s Red Sea coast and in the south of its Sinai peninsula, both of which are opposite Saudi Arabia.
Egypt has been seeking large-scale investments as it tries to overcome a long-running economic crisis that led to record inflation, a rising debt burden and sharp currency devaluations over the past two years.
In talks with Sisi the crown prince was expected to discuss bilateral relations with a focus on trade and investment, as well as regional affairs including the crises in Lebanon and the Palestinian territories, the diplomatic sources said.
Saudi state TV confirmed that the crown prince had departed for Egypt, without giving further details.
(Reporting by Mohamed Waly; Additional reporting by Libby George; Writing by Aidan Lewis; Editing by Hugh Lawson)
Comments