By Noureddine Omar | 2024-10-30

CAIRO -- A recent move to deepen Saudi-Egyptian economic cooperation signals a desire for stability and prosperity in a region roiled with violence largely fueled by the Iranian regime and its proxies, analysts said.

Saudi companies are poised to invest up to $15 billion in Egypt over the next three years as part of a deal that encourages and protects mutual investments and boosts the strategic partnership between the two nations.

The Saudi Public Investment Fund in October announced it would invest $5 billion in Egypt as part of an initial phase.

The multi-sector private investments, announced October 16, follow an agreement to establish a Saudi-Egyptian Supreme Coordination Council to deepen cooperation.

The council will be headed by Egyptian President Abdel Fattah al-Sisi and Saudi Crown Prince Mohammed bin Salman, who witnessed the signing of the accord during a visit to Cairo.

"The visit of Saudi Crown Prince Mohammed bin Salman to Egypt is a strong message from the two countries to those who want to disrupt the peace process in the region," political analyst Abdul Nabi Bakkar told Al-Fassel.

It emphasizes that the countries of the Middle East seek "stability and security through strategic partnerships," he said, adding that analysts see this message as "very smartly timed" given the actions of the Iranian regime and its proxies.

Houthis' impact on regional economy

The Iranian regime and its proxies have had a "disastrous impact on all countries of the region, both directly and indirectly," Bakkar said.

Egypt and Saudi Arabia "have sustained the most damage due to the restrictions on the movement of shipping vessels, the transport of petroleum products and the near-closure of the Suez Canal" due to the Houthis' attacks, he said.

Egypt is surrounded by regional conflicts and is facing numerous challenges, Ain Shams University economist Shaher Abdullah told Al-Fassel.

But it is trying to move past them by putting its economy in order, "moving forward in the process of combating corruption and providing an infrastructure that attracts investors in all possible fields," he said.

In this process, "cooperation with the Saudis will be key because of the historical relationship between the two countries, which now intersect closely owing to the convergence of visions based on the principles of security and stability," he said.

This "will enhance the financial position of both countries to confront the challenges they and the entire region are facing," he said.