Friday, 16 November 2018

Saudi Arabia, Egypt Sign $10 Billion Deal on Mega-City

Egyptian President Abdel-Fattah el-Sisi, left, greets Saudi Crown Prince Mohammed bin Salman upon his arrival to Cairo, Egypt. AP

Egyptian President Abdel-Fattah el-Sisi, left, greets Saudi Crown Prince Mohammed bin Salman upon his arrival to Cairo, Egypt. AP

Saudi Arabia has signed with Egypt an investment agreement to develop Egyptian lands south Sinai to become part of a planned mega-city and business zone unveiled by Saudi Arabia last October.

The two countries have set up a $10 billion joint investment fund (Egyptians’ share of this fund include the long-term leases) to invest in lands located on the Egyptian side as part of the mega-city project, as Crown Prince Mohammed bin Salman met President Abdel Fattah al-Sisi in Cairo.

Reuters reported a Saudi official as saying that Egypt has committed more than 1,000 square kilometers of land in the southern Sinai Peninsula to NEOM project.

Prince Mohammed previously announced plans for the 26,500 square km zone, known as NEOM, at an international investment conference in Riyadh. Officials said public and private investment in the area was eventually expected to total $500 billion.

The mega-city, with its own judicial system and legislation designed to attract international investors, is to focus on industries such as energy and water, biotechnology, food, advanced manufacturing and tourism, according to officials.

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