Saudi Arabia’s Crown Prince Mohammed bin Salman has announced a $5 billion investment in Egypt via the country’s sovereign wealth fund, the Public Investment Fund (PIF).

This was announced during a meeting with Egyptian Prime Minister Mostafa Madbouly in Riyadh on Tuesday. It is part of a broader effort to enhance economic ties between the two countries.

“We are currently working on finalizing the agreement on the protection of joint investments, which will contribute to increasing investments between the two countries. A significant number of Egyptian investment companies operate in Saudi Arabia, in addition to Saudi investments in Egypt,” Madbouly said.

He emphasized the importance of leveraging the African Continental Free Trade Area to penetrate African markets with Egyptian and Saudi products. 

“Egyptian products have already established a successful presence in African markets. We believe that through collaboration and understanding between Egypt and Saudi Arabia, and with the support of the Egyptian-Saudi Business Council, a strategic objective can be achieved: establishing a significant presence in the African market within the next three years across specific sectors, with a clear focus on priorities,” he said.

Joint cooperation initiatives were discussed in a separate meeting with Bandar bin Ibrahim Alkhorayef, the Saudi Minister of Industry and Mineral Resources.

Egyptian Minister of Finance Ahmed Kojak, Minister of Investment and Foreign Trade Hassan El-Khatib, Egyptian Ambassador to Riyadh Ahmed Farouk, and Saudi Ambassador to Cairo Saleh bin Eid Al-Hussaini attended the meeting.

Alkhorayef highlighted the importance of fostering industrial integration and expanding the trade exchange base between the two countries. “We are currently identifying areas for collaboration to achieve partnerships between investors from both sides. We believe that industrial integration between Egypt and Saudi Arabia will serve as a catalyst for sustainable cooperation between the two nations,” Alkhorayef said.

The visit to KSA aimed to explore investment opportunities between the two countries, as well as discuss ways to address challenges faced by Saudi investors in Egypt. Madbouly assured investors that any remaining issues would be resolved within the next two to three months and outlined significant efforts made in 2024 to address these concerns.

Moreover, the Crown Prince also underscored the significance of the power grid connection between Egypt and Saudi Arabia, with plans to provide further support for companies working in the field of renewable energy in Egypt.

He also addressed KSA’s collaborative efforts with Egypt in managing regional crises, including the war in Gaza, the situation in Yemen, and Red Sea security.

Now accepting applications for Fast Company Middle East’s Most Innovative Companies. Click here to apply.