Egypt's Sisi, Saudi crown prince call for de-escalation in Middle East

Saudi Arabia's Crown Prince Mohammed bin Salman met with Egyptian President Abdel Fattah el Sisi in Cairo, calling for regional de-escalation as Egypt prepares for a fresh $5 billion in Saudi investments.

The pair reiterated calls for de-escalation and ceasefires in both Gaza and Lebanon, warning that "attempts to liquidate the Palestinian cause intend to perpetuate conflict in the region", Sisi's office said.

They also witnessed the formation of a high-level Saudi-Egyptian coordination council and the "signing of an agreement to encourage and protect mutual investments", after months of Egyptian attempts to draw Saudi investors in.

Last month, the crown prince announced he had directed the kingdom's sovereign wealth fund to "pump $5 billion in investments in Egypt as an initial phase", according to Egyptian Prime Minister Mostafa Madbouly's office.

Madbouly signalled in a cabinet meeting this week that the government was set to announce "important news" on the long-delayed privatisation of "banks and airports", according to a cabinet statement.

Remaining issues

Earlier this year, Egypt received a bailout of over $50 billion in loans and investment deals including from the International Monetary Fund, the World Bank and the United Arab Emirates.

Abu Dhabi alone pledged $35 billion for a land development deal for Egypt's Ras al-Hikma on the Mediterranean coast.

Reports then emerged of a similar but smaller Saudi investment deal to develop Ras Gamila on Egypt's Red Sea coast, as well as investor interest in the country's tourism, energy and banking sectors.

Madbouly last month said that of the around "90 problems" facing Saudi investors in the North African country, only "14 issues" remained.