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Egypt and Saudi Arabia to Forge $1.5 Billion Economic Alliance at Business Forum

November 20, 2023

Egypt and Saudi Arabia are set to ink agreements amounting to USD 1.5 billion (EGP 47 billion) at the imminent Egyptian-Saudi Business Forum in Cairo on 20 November, according to Turki Al-Hokair, a member of the Egyptian-Saudi Business Council. Recognizing Egypt’s commitment to addressing challenges faced by Saudi investors, Al-Hokair praised the nation’s economic accomplishments amidst global adversities. This venture aligns with Egypt’s strategy of attracting foreign investments, particularly from Gulf nations, to bolster its depleting US dollar reserves. 

In light of this, Egypt’s Minister of Trade and Industry, Ahmed Samir, convened an extensive session of talks with Saudi Minister of Commerce, Majed Bin Abdullah Al Qasabi on 19 November. The meeting, attended by a significant number of Saudi investors, aimed at enhancing economic collaboration between the two nations across diverse sectors such as commerce, industry, and investment. 

During the session, Samir highlighted that Saudi investments in Egypt stand at USD 6.3 billion (EGP 194 billion) across 7,444 projects spanning industry, construction, tourism, services, agriculture, finance, communications, and information technology. Emphasizing the robust economic ties, Samir disclosed that the bilateral trade volume between the two countries reached approximately USD 5.66 billion (EGP 174 billion) last year, marking a substantial 23.9% increase compared to the USD 4.57 billion (EGP 145 billion) recorded in 2021.

In July, Egypt and Saudi Arabia signed a memorandum of understanding (MoU) geared towards boosting cooperation in non-oil exports and fostering automotive industry growth.In the pharmaceutical sector, Egyptian Prime Minister Mostafa Madbouly inaugurated on 19 November a new pharmaceutical factory operated by the Saudi Arabian company Jamjoom Pharma in Egypt, with investments totaling approximately EGP 3 billion (USD 97 million). 

Official data showcases a 13.5 percent rise in 2021/2022 trade, totaling USD 10.3 billion. Egypt’s exports to Saudi Arabia reached nearly USD 2.5 billion (EGP 76 billion) in 2022, reflecting an 11.2 percent rise, while imports from Saudi Arabia amounted to USD 7.9 billion (EGP 243 billion), marking a 14.3 percent increase. Noteworthy is the significant growth in Saudi investments in Egypt, soaring from USD 325.3 million (EGP 10 billion) in 2020/21 to USD 491.6 million (EGP 15 billion) in 2021/22, a 51.5 percent surge.

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