Saudi Arabia and Egypt are moving towards strengthening their economic ties and enhancing industrial cooperation.
This comes in light of the Saudi Minister of Industry and Mineral Resources, Bandar Al-Khorayef, official visit to Egypt, during which he explored economic cooperation and investment opportunities in various strategic industrial sectors.
Fostering Bilateral Relations
On Sunday, December 15, 2024, Al-Khorayef embarked on an official visit to Egypt. The visit aims to enhance bilateral economic relations, strengthen joint cooperation across industry and mining sectors, and explore the mutual investment opportunities in the promising strategic sectors, such as food and pharmaceuticals.
The Saudi delegation comprises senior officials, including Deputy Minister of Industry and Mineral Resources, Khalil bin Salamah; Saudi EXIM Bank Chief Executive, Saad Alkhalb; and Saudi Exports Development Authority Chief Executive, Abdulrahman Althukair.
Solid Strategic Ties
Al-Khorayef’s visit to Egypt builds on his previous visits to the country. It aims to follow up on the progress of the signed agreements and memoranda of understanding (MoUs) to achieve tangible results and underscore the solid strategic relations between Saudi Arabia and Egypt.
The two countries enjoy robust trade ties, with Saudi Arabia’s non-oil exports to Egypt totaling SAR 9.9bn in 2023, while non-oil imports from Egypt reached SAR 9.6bn.
Steps towards Industrial Integration
In an effort to further enhance economic relations, Al-Khorayef on Monday met with the Egyptian Prime Minister, Mostafa Madbouly, according to the Saudi Press Agency (SPA). Their discussions focused on exploring ways to advance industrial integration in sectors related to national security, such as food and drug security, and the automotive industry.
During the meeting, both officials emphasized the importance of the Saudi-Egyptian Supreme Coordination Council and the Agreement on the Encouragement and Reciprocal Protection of Investment. These initiatives were launched during the Saudi Crown Prince‘s visit to Egypt in October 2024.
Al-Khorayef and Madbouly highlighted the role of both initiatives in promoting investment growth in the two countries, boosting trade, and encouraging the private sector to capitalize on investment opportunities in Saudi Arabia and Egypt.
Areas of Focus
The Saudi Industry Minister’s visit to Egypt included a series of bilateral meetings with Egyptian officials to strengthen cooperation in the sectors of industry and mining, and attract investments to the Kingdom’s strategic industrial sectors.
To this end, Al-Khorayef engaged in talks with Egyptian Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel El-Wazir; Minister of Investment and Foreign Trade, Hassan El-Khatib; Minister of Petroleum and Mineral Resources, Karim Badawi; and Central Bank of Egypt (CBE) Governor Hassan Abdallah.
During his meeting with El-Wazir, the Saudi Minister stressed the importance of enhancing joint cooperation to activate industrial integration tracks as agreed between the two countries’ technical teams.
Furthermore, Al-Khorayef highlighted the role of Saudi Vision 2030 in leading Saudi Arabia’s economic transformation, promoting growth across all sectors.
He also pointed to the launch of multiple strategies designed to create added value to Saudi industry, mining and exports sectors, in addition to several initiatives and enablers that streamline the industrial investors’ journey.
Cooperation in Industry and Mining
In his meeting with the Egyptian Investment Minister, Al-Khorayef discussed fostering cooperation in investment sector and building effective partnerships with the private sector in both countries to leverage opportunities in Saudi Arabia and Egypt.
Meanwhile, the Saudi Industry Minister, during his meeting with Egypt’s Minister of Petroleum, underscored the Kingdom’s commitment to boosting cooperation with Egypt in the sector of mining and mineral industries, and capitalizing on the vast economic potentials of both nations.
In the light of this, he invited the Egyptian Minister to the fourth edition of the Future Minerals Forum, which will take place in Riyadh in January 2025.
Al-Khorayef’s meeting with the CBE Governor focused on exploring the financing mechanism and guarantees which financial institutions in both countries could offer to facilitate trade transactions and provide solutions for investors.
Pharmaceutical Industries
The Saudi delegation’s visit to Egypt explored other areas of cooperation, focusing on food manufacturing and biopharmaceutical technology field.
On this matter, the Saudi Deputy Minister of Industry and Mineral Resources, Khalil bin Salamah, met on Monday with the Chairman of the Federation of Egyptian Industries (FEI), Mohamed El-Sewedy. They discussed cooperation in the industrial sector, with focus on the industrial investment opportunities in Saudi Arabia and Egypt.
He also met with leaders of major private sector companies in Egypt, including officials from Minapharm, Eva Pharma, and the chairman of the Medical Union Pharmaceuticals. The meetings explored opportunities of joint cooperation and the localization of pharmaceutical industries in Saudi Arabia.
Food Manufacturing
Moreover, the Saudi Deputy Minister visited the Beyti factory, a subsidiary of Almarai, emphasizing the significant role of the Saudi company in bolstering Saudi-Egyptian economic ties. He also explored ways in which Almarai can utilize its factory’s location in Egypt to export its products to African markets.
Bin Salamah also explored investment opportunities in Saudi Arabia with the chairman of the Egyptian Company for General Development (GALINA).
The meeting involved a presentation on the objectives of the National Industrial Strategy (NIS). It highlighted the expected growth in the Saudi packaged and frozen fruits and vegetables sector, and emphasized the use of the Fourth Industrial Revolution technologies to enhance productivity.
