Egypt signs 5-year oil agreement with Saudi Arabia

Ahram Online , Monday 21 Mar 2016

Meeting in Riyadh
A $1.5 billion deal was signed at the fifth Egyptian-Saudi cooperation council meeting in Riyadh to fund Sinai's development. (Photo Courtesy of the Ministry of International Cooperation.)

Egypt signed a framework agreement with Saudi Arabia, under which the North African nation will meet its needs of oil products for five years, Egyptian international cooperation ministry stated on its website on Sunday.

The signing is part of the fifth meeting of the Egyptian-Saudi coordination council held in Riyadh and chaired by Egyptian minister of international cooperation Sahar Nasr.

In January, Saudi Arabia pledged $20 billion worth of petroleum products to Egypt over five years with facilitated payments.

According to the ministry, Nasr also signed a deal with SDF worth $1.5 billion to finance development projects in Sinai that are carried out by Egypt's Armed Forces. 

"The minister [Sahar Nasr] highlighted the importance of sustainable development and offering work opportunities for the residents of Sinai, which is the most important way to eliminate extremism and terrorism," the statement read.

The development projects in Sinai include North Sinai's development axis highway, four secondary roads, agricultural agglomerations, 26 residential projects including houses, medical units, and schools, the statement said.

Egypt and Saudi Arabia signed a memorandum of understanding to encourage Saudi investments in Egypt in an agreement between the Saudi public investments fund and the Egyptian investment ministry.

The signing comes ahead of an expected visit to Cairo by Saudi King Salman Ben Abdel Aziz in early April.

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