News

Saudi Arabia to Support Egyptian Petroleum Needs for 5 Years

Saudi Arabia to Support Egyptian Petroleum Needs for 5 Years

President Abdel Fattah al-Sisi with Saudi Crown Prince Mohamed bin Salman bin Abdel Aziz, Dec. 15, 2015. Presidency Handout.
President Abdel Fattah al-Sisi with Saudi Crown Prince Mohamed bin Salman bin Abdel Aziz, Dec. 15, 2015. Presidency Handout.

By Hend Kortam, Aswat Masriya

Saudi Arabia is going to raise its investments in Egypt to above 30 billion Saudi riyals (USD 8 billion) and will “contribute to providing Egypt with petroleum needs for the next five years,” the two countries said on Tuesday.

After the second meeting of the Saudi-Egyptian Coordination Council, the two countries said in a joint statement, published on the Saudi state news agency SPA, that the new financial support is based on instructions from King Salman.

The kingdom has been generous with Egypt, a net importer of energy, since mid-2013 but the financial assistance now comes at a time when Egypt’s cash-strapped economy is in dire need. Years of political turmoil have taken a toll on the Egyptian economy, halving the state’s foreign reserves and driving away tourists, which has contributed to a dollar shortage.

The meeting of the bilateral council on Tuesday was led by Prime Minister Sherif Ismail on the Egyptian side, while Saudi Defence Minister and Deputy Crown Prince Mohamed bin Salman Al Saud led his country’s delegation.

The meeting comes one day after Saudi Arabia launched an “Islamic alliance” to fight terrorism, made up of 34 countries including Egypt.

The new coalition will be based in Riyadh, the capital of the oil-rich monarchy and says it will fight any terrorist group that comes before it.

Egypt and the Saudi kingdom have both kept terrorism high on their agenda throughout 2015, even engaging in military action in their fight against it.

In March, Saudi Arabia led a military coalition in Yemen, where it wants to prevent the Houthis from climbing to power. Egypt is part of the Saudi-led coalition, which launched its operations after the Shia rebel movement made advances onto the Yemeni south.

The Egyptian state actively addresses terrorism during international events and high-level talks and has waged campaigns against it inside its territory and outside its borders.

In February, Egypt’s air force launched air strikes in Libya, which it says hit militant targets, after the beheading of 20 Coptic Egyptians at the hands of militants believed to belong to the Libyan division of ISIS.

The Egyptian military also launched multiple operations in the past two years in the Sinai desert to fight militant activity which surged starting mid-2013.

Both states are part of the U.S.-led coalition to fight the Islamic State fighters in Iraq and Syria, known as ISIS.

Saudi Arabia is among the strongest backers of the Egyptian government.

Saudi Arabia and Gulf neighbours, Kuwait and the United Arab Emirates were quick to show support to Egypt after the military ouster of Muslim Brotherhood politician and former president Mohamed Mursi in 2013, after mass protests against his rule.

Together these three countries have provided Egypt with billions of dollars in the form of grants, loans and petroleum products.

Fear of Sex in Egypt: Misinformation and Cultural Ignorance Lead to Sexual Violence
Egyptian TV Host Under Fire for Airing Private Photos of Parliamentarian Khaled Youssef

Subscribe to our newsletter


News
@AswatMasriya_En

Aswat Masriya is a Thomson Reuters Foundation-sponsored website that covers Egypt's transition to democracy. en.aswatmasriya.com

More in News

pablo-4

Egypt’s Foreign Minister in ‘First Meeting’ Between Arab Official and US Vice President-elect

Egyptian StreetsDecember 1, 2016
A street in Luxor.

UK Court Allows British Woman to Adopt Girl ‘Found in a Box’ in Egypt’s Luxor

Egyptian StreetsNovember 30, 2016
egypt parliament

Egypt’s Parliament Passes Controversial NGO Law

Aswat MasriyaNovember 30, 2016
The arrival hall is empty at the Sharm el-Sheikh Airport in south Sinai, Egypt, Monday. Airbus executives say they are confident in the safety of the A321 that crashed Oct. 31 in Egypt's Sinai Peninsula, killing all 224 people on board. Photo: AP

UN World Tourism Organization Urges UK to Return Flights to Sharm El-Sheikh

Egyptian StreetsNovember 29, 2016
Ministry_of_Foreign_Affairs_of_Egypt_Cairo

No Egyptian Soldiers Fighting in Syria: Egypt’s Foreign Ministry

Egyptian StreetsNovember 28, 2016
Archive Photo. Credit: Asmaa Waguih/ Reuters

Al-Jazeera Documentary on Egyptian Conscripts Reignites Media War with Qatar

Aswat MasriyaNovember 27, 2016
RiseUp 2015, which saw the presence of over 4000 attendees

Cairo to Attract 5,000 Investors and Entrepreneurs in RiseUp Summit Next Month

Nayrouz TalaatNovember 26, 2016
population crowd

Egypt’s Population Increases 1 Million in Six Months to Reach 92 Million

Egyptian StreetsNovember 24, 2016
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.