News

Egypt to Receive $US 3 Billion from Saudi Arabia to Develop the Sinai, Finance Oil Purchases

Egypt to Receive $US 3 Billion from Saudi Arabia to Develop the Sinai, Finance Oil Purchases

Egypt's President Sisi meets Saudi King Salman in March 2015.
Egypt’s President Sisi meets Saudi King Salman in March 2015.

Egypt is set to receive more than $US 3 billion from Saudi Arabia in loans and grants to develop the Sinai peninsula, finance the country’s oil purchases, and to promote trade.

In statements to Bloomberg , Egyptian Minister of International Cooperation Sahar Nasr, who has been in the Saudi capital city, said that the agreement would help boost Egypt’s economy.

According to the Minister, Egypt and Saudi Arabia reached an agreement for Egypt to receive a $US 1.5 billion loan to develop the Sinai Peninsula, a $US 1.2 billion loan to finance oil purchases, and $US 500 million grant which will be used to buy Saudi exports and products.

Without providing any further details, the Minister told Bloomberg that the loans are on “favorable terms”.

In December 2015, Egypt announced that it would propose development projects in the Sinai Peninsula at a cost of $US 1.5 billion to a number of Arab development institutions. Egyptian President Abdel Fattah Al-Sisi had previously vowed to develop areas of the Sinai to ensure sustainable growth and development.

According to Bloomberg, the new agreement “suggests that Saudi Arabia is still committed to supporting Egypt even as the oil-rich kingdom cuts subsidies to shore up its finances, though it is significantly smaller than the tens of billions which Saudi Arabia along with Kuwait and the U.A.E poured into Egypt after the 2013 military-led ouster of Islamist President Mohamed Morsi.”

Egypt Condemns Attack on Saudi Arabian Embassy, Denounces 'Iranian Intervention'
Egypt's President Sisi Meets Greek Catholic Patriarch, Discusses Religious Tolerance

Subscribe to our newsletter


News

More in News

A pharmacist searches for medicine at a pharmacy in Cairo, Egypt, November 17, 2016. REUTERS/Mohamed Abd El Ghany

Egyptian Military Forms Pharmaceutical Company

Egyptian StreetsJanuary 23, 2017
Egypt's military prepares ahead of new operations against militants in Sinai

Five Soldiers Killed in Ambush in Egypt’s North Sinai

Egyptian StreetsJanuary 23, 2017
61320490

Egypt Knocked Out of Handball World Championships

Egyptian StreetsJanuary 23, 2017
egypt

Egypt Defeats Uganda in African Cup of Nations

Egyptian StreetsJanuary 22, 2017
Egypt's Karim Abdel Gawad and France's Camille Serme

Egypt’s Karim Abdel Gawad Wins Tournament of Champions in New York

Egyptian StreetsJanuary 21, 2017
22.jpg.crop_display

Cairo Court Lists Egyptian Football Legend Aboutreika on Terror List

Egyptian StreetsJanuary 19, 2017
32385636795_e6f5d7101d_z

Egypt Secure Spot in Knockout Stage at 2017 Handball World Championship

Egyptian StreetsJanuary 19, 2017
1073779_big-lnd

Egypt’s Essam El-Hadary Makes African Cup History

Egyptian StreetsJanuary 18, 2017
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.