Egypt will get around US$20 billion in oil products from Saudi Arabia over five years, a government official said, marking the kingdom’s latest display of support for its struggling North African ally.
The deal grants Egypt easy payment terms, said the official, who asked not to be named because the agreement details will be made public at a ceremony attended by both heads of state. Saudi Arabia’s oil ministry couldn’t immediately be reached for comment.
The two countries also finalized a 3-month oil deal worth US$1.5 billion that both sides were negotiating earlier this month, the official said. That deal is part of the 5-year agreement.
The agreement is the latest in a series of Saudi pledges of economic support for Egypt, even as the oil-rich kingdom cuts subsidies to shore up its finances. Saudi Arabia, along with Kuwait and the UAE, poured tens of billions into Egypt to support the regime following the 2013 military-led ouster of Islamist President Mohamed Morsi.
In January, Saudi Arabia promised to invest 30 billion riyals (S$11.4 billion) in Egypt through its public and sovereign funds. It also agreed to provide US$1.5 billion to develop the Sinai peninsula, and granted US$200 million of loans for small- and medium-sized enterprises.