By Mohamed Ayyad
Saudi Arabia agreed to pump investments of EGP 9.5m in Egypt in the upcoming period in addition to the existing investments in various sectors, said Minister of Investment Ashraf Salman.
Salman told Daily News Egypt that SAR 30bn ($8bn) of the investments will go to unconditioned private projects that were presented by Egypt and currently being studied by Saudi Arabia. Some $1.5bn of the investments will be limited to service development projects, such as sanitation and middle class housing.
Salman said Saudi Arabia will pump the first tranche of investments, which will be provided by Saudi sovereign funds estimated by SAR 30bn, during the first quarter (Q1) of 2016.
As for the remainder $1.5bn, some amounts of which might be pumped before that date.
Saudi Arabia has promised around $4bn during Egypt Economic Development Conference (EEDC), which was held in Sharm El-Sheikh last March. The $4bn were distributed on $2bn in deposits and $2bn in investments;). Salman said however that these investments were limited to development projects.
During the meeting of the Saudi Coordination Council, Egypt presented Saudi Arabia a package of projects in various sectors, Salman said.
Negotiations are currently taking place regarding dollarised deposits, of which the value is not yet determined, besides purchasing petroleum materials from Saudi Arabia securing Egypt’s needs for the next five years.
Egypt had agreed with Saudi Aramco Company to provide petroleum products’ needs for three months, starting September 2015. The deal amounted to $1.4bn with repayment’s facilitations on three years, with 3% interest.
Salman said the negotiation regarding oil products are still in the beginning, while the interest rate for these products’ purchase are not yet defined.
He also revealed that the next period will witness intensified meetings between Egypt and Saudi Arabia to activate these investments, valued at SAR 30bn in Egypt. He further stressed that Saudi specialised investment funds.