Egypt and Saudi Arabia signed on Thursday a deal to establish a company to invest in Egyptian start-ups and small businesses with a Saudi grant of EGP 451 million, Egypt's international cooperation ministry announced in an official press release.

The deal was signed by investment minister Sahar Nasr and Saudi Arabia's Development Fund Director Hassan El-Attas.

The Egyptian Company for Entrepreneurships and Investments will be investing in growing businesses, business incubators and venture capital firms to support growth and economic development in Egypt.

The company will aim to fill in the funding gap for companies having trouble in obtaining all the financing they require.

Minister Nasr expressed her happiness with the signing of the deal, which she said comes in the framework of the strategic relationship between Egypt and Saudi Arabia.

According to the minister, the Saudi grant will be used to help aspiring investors and emerging projects, asserting the ministry's keenness on offering equal opportunities to all investors and providing them with technical and financial support.

Saudi representative Al-Attas said the deal should contribute to providing job opportunities for youth.

Saudi Arabia was one of several Gulf countries that provided the government of Egyptian President Abdel-Fattah El-Sisi with billions of dollars in aid shortly after El-Sisi's election in 2014.

The kingdom has also contributed with investments and deposits to prop up Egypt’s ailing economy, as well as resuming oil shipments by Saudi company Aramco this month after a five-month suspension.