Egypt’s government said it had signed a memorandum of understanding for US$900 million in economic aid from the Saudi Fund for Development, Bloomberg reported.

Egypt will receive US$500m in loans for development projects at 2 per cent annual interest over 20 years, with a five-year grace period, the cabinet said in a statement.

Egypt will also receive a $200m grant for small and medium businesses, $150m in loans to be used to import non-hydrocarbon Saudi Arabian products and a $50m loan for a power station in Benha, Egypt.