Saudi Arabia will provide Egypt with 700,000 tons of petroleum products a month under a $23b deal over five years signed between Saudi Aramco and the Egyptian General Petroleum Corporation (EGPC), an EGPC official was quoted by Reuters as saying.
“The Saudi Fund for Development will pay Aramco for the petroleum products directly, and receive in return the amount from Egypt in installments,” the source said.
Egypt will get financing for the products but will have to repay the money. This deal further highlights a change in strategy by Saudi Arabia to focus more on a type of financial support for Egypt that will also provide Saudi Arabia with a return on its investment.
The deal is part of financial support for Egypt announced during an official April visit by Saudi Arabia’s King Salman to Cairo, Ahram Online wrote.