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Saudi Arabia accelerates efforts to strengthen alliances with Egypt, Turkiye, Pakistan

December 8, 2022 at 8:56 pm

Saudi Finance Minister Mohammed Al-Jadaan []

Saudi Arabia is looking to boost investments in Egypt, while eyeing opportunities to deepen relations with Turkiye and Pakistan, according to a report by Bloomberg.

The Kingdom has recently taken several steps to offer financial support to countries in the region struggling with high inflation, as Riyadh looks to strengthen allies and forge new relations.

Saudi Finance Minister, Mohammed Al-Jadaan, said Wednesday that his country has begun to invest heavily in Egypt, pointing to the Public Investment Fund’s intention to pump cash into the North African country.

“Investments are more important than deposits. Deposits can be withdrawn, but investments remain” he said.

On 29 November, the Kingdom extended the terms of a $5 billion deposit in Egypt’s Central Bank, which would help Cairo secure a $3 billion loan from the International Monetary Fund.

In late March, an informed Saudi source revealed that, with the $5 billion deposit, the volume of Saudi deposits in Egypt would reach $10.3 billion.

The Kingdom is also scheduled to deposit $5 billion in the Turkish Central Bank which would represent a major boost to President Recep Tayyip Erdogan’s attempt to maintain the stability of the Turkish lira ahead of next year’s presidential elections.

Once the deposit is completed, it will culminate in a rapprochement between Turkiye and Saudi Arabia that began recently, and ended years of mutual hostility.

Minister Al-Jadaan said, “Saudi Arabia and Turkiye are in the final stages of agreeing on the terms of the deposit, and the deposit could happen within days.”

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