The Saudi-Egyptian Investment Forum was recently held in Cairo, with the participation of officials and business leaders from both Saudi Arabia and Egypt. The forum aims to strengthen economic cooperation and explore $30 billion in investment opportunities.
The forum highlighted investment opportunities and incentives in both countries, their respective business environments, and potential partnership avenues, especially in sectors such as industry, real estate development, tourism, the economy and free zones.
Saudi-Egyptian economic relations are a high priority for the leadership of both countries, with Egypt being the Kingdom’s seventh-largest trade partner. At the forum’s conclusion, a number of memoranda of understanding (MoUs) were signed between Egyptian and Saudi companies in various sectors.
Investment protection agreement solves 80 percent of investor challenges
Led by Hassan Moajab Al-Huwaizi, chairman of the Federation of Saudi Chambers, the Saudi delegation’s visit also coincides with the Kingdom and Egypt’s recent approval of an agreement to encourage and protect mutual investments. The investment protection agreement was initially signed during Crown Prince Mohammed bin Salman’s visit to Cairo in October and was approved by Egypt’s parliament in March.
On the sidelines of the forum, Hossam Heiba, chairman of the Egyptian General Authority for Investment and Free Zones, said that Egypt has solved 80 percent of the challenges facing Saudi investors and created a special unit for these obstacles. Heiba also revealed that Egypt launched a Golden License for companies establishing strategic projects in the country, adding that Saudi Arabia ranks third in terms of investment in Egypt, with 7,963 companies.
Complementary investment system to propel growth
For his part, Assistant Minister of Investment and Chairman of the Saudi Investment Promotion Authority (SIPA) Ibrahim Al-Mubarak affirmed that Saudi Arabia and Egypt, with their economic strength, political influence and strategic locations, are capable of building a complementary investment system that leverages each country’s unique advantages.
He indicated that it will also create real added value, benefiting not only investors but also contributing to sustainable development in both nations and the stability and prosperity of the entire region.
“The relations between the Kingdom and Egypt are built on solid foundations of brotherhood and mutual understanding and have evolved over the decades to become an advanced model of Arab cooperation,” he said. He added that the economic partnership between the Saudi Arabia and Egypt was strengthened through the signing of the Investment Promotion and Protection Agreement during the visit of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, to Egypt last October.
Trade exchange surpasses $16.3 billion in 2024
Al-Mubarak also confirmed that Saudi-Egyptian relations reflect the strategic depth between the two countries, with trade exchange in 2024 exceeding SAR61.1 billion ($16.3 billion), marking a notable growth of 29 percent compared to 2023.
He noted that the number of Egyptian investment licenses in the Kingdom has reached around 6,000, the highest in the country, with more than 80,000 employees working in these companies. These investments are concentrated in key sectors such as construction, manufacturing, and wholesale and retail trade, the assistant minister noted.
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Four agreements in key sectors
During the forum, Egypt’s General Authority for Investment and Free Zones announced that four Egyptian-Saudi investment agreements were signed. Heiba, the authority’s chairman, witnessed the signing of the four investment agreements between the business communities in Egypt and Saudi Arabia. These agreements cover key sectors, including investment promotion, food industries, solar energy, metal industries and real estate development and marketing.
The first memorandum of understanding was signed by Business City Group and GCC Capital Partners. The agreement aims to provide innovative investment solutions and attract foreign capital to the Egyptian market in poultry production and farming, food and agricultural processing, the agricultural sector and related industries, private and international education, real estate development and integrated residential projects, and the export of Egyptian products to foreign markets.
Saudi Arabia’s ASAS and Cairo-based Alcotech Engineering Industries signed the second memorandum of understanding, which stipulates the establishment of a factory to produce aluminum cladding panels and its derivatives. The factory will have an area of 10,000 square meters and a production capacity of 3.6 million meters annually.
The third memorandum of understanding was signed between Nanovolt and Saudi-based Alyusr Business Company. The agreement focuses on the marketing, sale and installation of solar panels and related supplies in both Egypt and Saudi Arabia.
The fourth agreement was signed between Saudi-based Yafel Real Estate Development and Investment and Horizon Capital. The two companies will cooperate on the management and development of Yafel Real Estate Development and Investment Company’s business.
