Egypt has struggled with discontent and poverty following the crackdown on the Muslim Brotherhood.
Reuters has reported citing two Egyptian government sources that Saudi Arabia is all set to sign a $20 billion deal with Egypt so as to develop its petroleum industry and a $1.5 billion deal to develop its Sinai region.
The agreements were scheduled to be signed yesterday during King Salman’s, Saudi Arabia’s ruler, visit to Egypt, a rare phenomenon.
In 2013, with the mass protesting erupting in Egypt over President Mohamed Mursi’s rule
Saudi Arabia, along with other Gulf oil producers, has pumped billions of dollars into Egypt’s flagging economy since the army toppled President Mohamed Mursi of the Muslim Brotherhood in 2013 after mass protests against his rule.
The Arab countries see the Muslim Brotherhood as an existential threat and has struggled to revive the economy after their uprising in 2011. With Cairo fighting an insurgency by Islamist militants, discontent and poverty are rife among residents.
The petroleum financing will attract an interest rate of just 2% for a period of at least 3 years, said sources.
As per the deputy head of the Saudi-Egyptian Business Council a total of $4 billion will be pumped in into projects that include energy, agriculture and the Suez Canal. Saudi Businessmen had already deposited 10% of the aforementioned amount in Egyptian banks.