Egypt signs $10bn deal with Saudi Arabia to support Neom project

Egypt is seeking investment from Saudi Arabia to help develop the Suez Canal region, where Cairo wants to establish an international transport, logistics and production hub. (SPA)
Updated 06 March 2018
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Egypt signs $10bn deal with Saudi Arabia to support Neom project

CAIRO: Egypt will allow stretches of land in the southern Sinai to be used for Saudi Arabia’s planned megacity Neom project announced by the Kingdom last October.
The agreement forms part of a $10 billion joint investment fund the two countries signed during the visit to Cairo this week by Crown Prince Mohammed bin Salman, according to a Saudi official.
The size of the committed land is said to be more than 1,000 square kilometers.
Saudi Arabia’s 26,500-square-kilometer Neom project is to focus on industries including water and energy, food, media, advanced manufacturing, biotechnology and entertainment.
It forms part of the country’s Vision 2030 growth strategy which aims to diversify the country away from its reliance on oil.
The project will run along the coast of the Red Sea as well as the Gulf of Aqaba. Its borders will extend across Egyptian and Jordanian borders, making it the first private economic zone to span three countries.
The megacity project plans to pioneer the latest technologies including automated driving, passenger drones, the use of robots and developing new ways of growing and processing food.
The project is expected to attract more than $500 billon of investment from the Saudi government, the Saudi Arabian Public Investment Fund (PIF) and international investors. Neom’s contribution to the Kingdom’s GDP is projected to reach $100 billion.
As part of the newly signed Egypt-Saudi joint venture, Saudi Arabia is to build seven cities and tourism projects, while Egypt will focus on developing the existing resorts of Sharm El-Sheikh and Hurghada.
Saudi Arabia is said to be working with Egypt and Jordan on attracting more European cruise and tourism companies active in the Mediterranean to consider operating in the Red Sea as well. An official said the Kingdom was currently negotiating with more than seven tourism-related operators.
Egypt and Saudi Arabia also signed an agreement during the Crown Prince’s visit to protect the marine environment and to maintain coral reefs and beaches in the Red Sea area.
Separately, Saudi Arabia announced last August it was planning to develop 50 luxury resorts on islands and other sites on the Red Sea, backed by PIF. Construction of this development is expected to start in 2019 and be completed in 2022, according to state news agency reports.
The Crown Prince arrived in Cairo on Sunday, meeting with Egypt’s President Abdel Fattah El-Sisi to discuss future cooperation in tackling terrorism and regional insecurity as well as how to strength business ties between the two countries.
The crown prince also met with Egypt’s Coptic Pope Tawadros II in the first such visit by a Saudi official to the spiritual center of the country’s Orthodox Christian community. He also met Egypt’s top Islamic official, Ahmad Al-Tayyeb, and saw a performance at the Cairo Opera.
Prince Mohammed is scheduled to arrive in the UK on Wednesday to meet British government officials.


Riyadh to host forum to observe World Heritage Day next year

Riyadh hosts the sixth National Urban Heritage Forum in April with its focus on investment opportunities in the urban heritage. (Reuters)
Updated 19 October 2018
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Riyadh to host forum to observe World Heritage Day next year

  • Forum will encourage private investment to capitalize on the country’s rich urban heritage
  • Saudi Commission for Tourism and National Heritage hosts the forum each year in a different part of the Kingdom

RIYADH: The Saudi capital will host the sixth National Urban Heritage Forum (NUHF) next April to coincide with World Heritage Day, with its focus on investment opportunities in urban heritage.

“The four-day National Built Heritage Forum will be launched in Riyadh on April 15,” said Majed Alshadeed, a spokesman for the Saudi Commission for Tourism and National Heritage (SCTH), on Thursday, adding that the forum will culminate on April 18, World Heritage Day. World Heritage Day is celebrated every year on April 18 with the aim of preserving the human heritage and recognizing the efforts of the relevant organizations in the field.

Organized by SCTH under the umbrella of the Custodian of the Two Holy Mosques Cultural Heritage Program, the 6th forum will encourage private investment to capitalize on the country’s rich urban heritage.

The forum will look at developing business models in the management and development of — and investment in — urban heritage sites, as well as the development of crafts and handicrafts.

The heritage forum is organized each year by the SCTH in a different province in collaboration with the relevant governorates, municipalities and local universities, following the recommendations of the first International Conference for Urban Heritage in the Islamic Countries, which was held in Riyadh in 2010.

The first session of the NUHF was organized in Makkah province, the second in the Eastern Province, the third in Madinah province, the fourth in Asir province and the fifth in Al-Qassim province.

Next year’s forum seeks to invest the expertise, knowledge and experience that the SCTH has gained and transfer it to the four economic sectors working in urban heritage. These sectors are construction, restoration and contracting, site operation, human resources development, and services and industries related to urban heritage.

The forum will include the distribution of prizes to the projects winning the Prince Sultan bin Salman Urban Heritage Awards, exhibitions, scientific sessions, workshops and business meetings with Saudi and international experts and consultants to discuss investment opportunities in urban heritage. There will also be a specialized expo for companies and institutions working in the sectors of the economics of architectural heritage, restoration and engineering consultancy.