CAIRO, 5 June 2005 — Egypt said that its relationship with Saudi Arabia has entered a new realm after the recent economic negotiations between the two countries.
“Egypt and Saudi Arabia have started a new stage of mature ties to promote their economic and investment cooperation,” Egyptian Minister of Trade and Industry Rasheed Muhammad Rasheed said. “The two countries will focus now on promoting their trade focus promoting their trade strategic infrastructure and encouraging the private sector to undertake its responsibility in increasing the volume of trade exchange between the two sides,” he explained adding that Saudi investment in Egypt is estimated at $1 billion.
The volume of bilateral trade between Saudi Arabia and Egypt came to $718.5 million, in 2004, comprising of Egyptian exports to Saudi Arabia amounting to $221.1 million and imports amounting to about $497.4 million from the Kingdom.
According to a report released on Saturday by the Egyptian Ministry of Foreign Trade, Saudi Arabia is the seventh biggest importing country from Egypt in 2004. The report said that number of Egyptian exports to Saudi Arabia increased by at least 20 percent last year.
Saudi Arabia currently heads the list of Arab countries that have large investments in Egypt and the two countries are regarded as the two Arab states with the “largest bilateral trade, estimated at about SR1.5 billion. Joint investment projects involving the two countries number 112 costing SR9.22 billion.”
Rasheed and his Saudi counterpart Hashem Yamani agreed on forming a Saudi-Egyptian mining company with Saudi Arabian investments amounting to $140 million. The company will handle the production of raw iron in Egypt and plan to open new markets in the Arab world and North Africa.
During the negotiations, the Saudi Basic Industries Corporation (SABIC) stressed its keen interest of buying 88 percent of the Egyptian Company for Fertilizers in northwest Suez Gulf region. The Saudi giant group also proposed a project of treatment and removal of sodium sulfate salts from Qaron lake in Al Feum area of Egypt.
Rasheed told reporters that the Saudi Television Factory Saudisat agreed on supplying the Egyptsat Company with 15,000 computers in 2005.
Gamal Al-Nazer, chairman of the Egyptian Businessmen Association and member of the Saudi-Egyptian Business Committee said the recent negotiations between the two countries witnessed a turning point as it emphasized the importance of the involvement of the private sector.
The two countries will agree on a plan to set up a factory for medicines in the Kingdom and to carry out a project for fertilizers in Egypt with Egyptian-Saudi investments up to $700 million. “We will also announce new tax incentives and custom reduction on Saudi exports entering the country,” Al-Nazer told Arab News.
