Saudi Crown Prince Eyes Strategic Investments in Egypt

Crown Prince Mohammed bin Salman of Saudi Arabia is visiting Cairo to engage with President Abdel Fattah al-Sisi on trade, investment, and regional crises. Saudi Arabia aims to invest significantly in Egypt, focusing on tourism development and other sectors, amid efforts to boost the Egyptian economy.

Saudi Arabian Crown Prince Mohammed bin Salman is set to visit Cairo on Tuesday for discussions with Egyptian President Abdel Fattah al-Sisi, focusing on trade, investment, and regional issues such as the crises in Lebanon and Gaza, according to diplomatic sources from Egypt.

Speculation around the visit centers on potential Saudi investments in Egypt, which has already seen substantial external financing this year, including a landmark $35 billion agreement with the UAE's ADQ. The Crown Prince, known as MbS, last visited Egypt officially in 2022. Historically, Saudi Arabia has extended financial help to Sisi's administration, but recent strategies suggest a shift towards investment over direct aid.

By early Tuesday afternoon, Egypt's sovereign dollar bonds showed improvement, with notable gains in longer-dated maturities. For instance, the 2059 bond maturity rose by 1.73 cents. Recently, Egypt's prime minister announced a planned $5 billion Saudi investment, distinct from funds already held in Egypt's central bank. Investment targets likely include tourism projects on the Red Sea and Sinai, as Egypt seeks economic recovery amid record inflation, high debt, and currency devaluation.

(With inputs from agencies.)