Strengthened ties: Saudi Arabia and Egypt

Egypt and Saudi Arabia have recently reinforced their strategic alliance, underscored by significant investments and collaborative projects that emphasize economic development and energy interconnectivity. As part of these efforts, Saudi investments in Egypt have reached approximately $15 billion, facilitated by agreements signed during the Saudi Crown Prince Mohammed bin Salman’s visit to Cairo. These agreements span multiple sectors, such as renewable energy, real estate, tourism, and technology, highlighting the breadth and depth of this partnership.

One of the key announcements is the planned electrical interconnection project, set to commence in mid-2025, which will enable a mutual exchange of up to 1,500 megawatts of electricity. The project aims to reach a total capacity of 3,000 megawatts, surpassing the entire energy capacity of the Gulf Cooperation Council. This initiative is expected to offer significant benefits for both countries, allowing them to share electricity during peak demand hours and enhance energy security within the region.

In terms of trade, both countries continue to maintain robust commercial exchanges. Saudi Arabia imports various mineral products, fruits, and prepared foodstuffs from Egypt, while Egypt relies on imports of Saudi dairy products, organic chemicals, and aluminum. Notably, Saudi exports to Egypt have grown substantially over the past five years, reaching $6.44 billion in 2022. The main exports included crude and refined petroleum, alongside ethylene polymers, showcasing the vital role of energy products in their trade relationship.

Beyond trade and energy, Saudi Arabia and Egypt are prioritizing increased local production to boost their economies and reduce reliance on imports. Egypt’s Prime Minister Mostafa Madbouly recently announced measures aimed at fostering local production of over 150 product groups that currently have a combined annual import value exceeding $25 billion. This initiative aligns with Egypt’s broader economic strategy to create job opportunities and drive sustainable growth.

As both nations continue to deepen their partnership, these developments mark a new chapter in Saudi-Egyptian relations, reinforcing their mutual commitment to regional stability and economic progress. Through collaborative projects and significant investments, Egypt and Saudi Arabia are well-positioned to address their domestic economic needs while playing a pivotal role in fostering regional cooperation.