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Mon 21 Mar 2016 09:29 AM

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Saudi Arabia offers $1.5bn to invest in Sinai projects

Kingdom to help build residential complexes, schools and hospitals, and invest in agriculture

Saudi Arabia offers $1.5bn to invest in Sinai projects
(Getty Images)

Saudi Arabia has said it will help finance projects in Egypt’s Sinai Peninsula to the tune of $1.5 billion.

The pledge follows the kingdom’s decision in December to offer $8 billion worth of investment to its North African ally.

Arab News reported that the deal was signed with Egypt’s International Cooperation Minister, Sahar Nasr.

The funds will be used to build 26 residential complexes, which will include hospitals and schools, as well as in the agriculture sector.

Saudi Arabia also signed a five-year agreement with Egypt on Sunday to help finance the country’s petrol needs.

The kingdom, and its Gulf allies, have provided considerable financial support to Egyptian president Abdel Fattah Al Sisi, following the ouster of former president Mohamed Mursi in 2013.

Earlier this month, a Saudi-UAE alliance of companies has reportedly sought approval to establish a $3 billion industrial city near the Suez Canal, in Egypt.

The group has submitted a request to the Economic Commission of the Suez Canal to obtain 5 million square feet of land, according to Saudi daily, Arab News.

The alliance's representative, Ahmed Sabri, reportedly said investors would be sought to contribute up to $3 billion to set up 120 factories to manufacture products including food and cars, as well as a business city and storage areas.

About $300 million would be set aside for basic infrastructure.

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