RIYADH – Saudi Arabia and Egypt set up a $10 billion (7.25 billion pounds)joint fund on Sunday to develop a planned mega-city, committing more than1,000 square kilometres in the south Sinai, as Crown Prince Mohammed binSalman met President Abdel Fattah al-Sisi in Cairo.
The deal came at the start of Prince Mohammed’s first public trip abroadsince becoming heir apparent last year and purging the kingdom’s businessand political elite in a crackdown on corruption that saw top princes andbusinessmen detained.
Egypt and Saudi Arabia have strengthened ties since Sisi took power in 2013after ousting the Muslim Brotherhood, which both countries have banned anddesignated as a terrorist organisation.
A Saudi official told Reuters that Riyadh’s part of the new jointinvestment fund will be cash to help develop the Egyptian side of NEOM,which Prince Mohammed unveiled last October as part of plans to wean theworld’s top crude exporter off oil revenues.
The investment deal underlines the strategic ties between the richest Arabstate and the most populous.
Cairo supports Riyadh in its fight against Iran-backed Houthi fighters inYemen, and last year joined a Saudi-led boycott of Gulf state Qatar andagreed to hand over two Red Sea islands to Saudi despite widespreadcriticism at home.
The day before Prince Mohammed’s visit, Egypt’s top court dismissed alloutstanding legal challenges to the deal on the Red Sea islands.
The Saudi visit comes three weeks ahead of an election where former generalSisi is seeking a second term. He is guaranteed a win in a vote where,critics say, authorities have locked up opponents or forced them to haltelection campaigns.
As Egypt tries to keep a lid on any internal unrest, it has sided firmlywith Saudi Arabia on key foreign policy issues including the face-offbetween the Sunni kingdom and its Shi’ite foe Iran.
Egypt eagerly joined Saudi Arabia and other Gulf allies last June in atrade and diplomatic boycott of Qatar, whose government and media itaccuses of supporting the Muslim Brotherhood, hundreds of whose membersCairo has imprisoned and sentenced to death. Doha denies the charges.
The Saudi prince will head to Britain on March 7 following his three-dayvisit to Cairo and then to the United States, Riyadh’s closest Westernally, later in the month.