On 01/01/1975 , Saudi Fund For Development has started to cooperate with Egypt.
• The Saudi Fund for Development (SFD), with headquarters in Riyadh, is a governmental financial institution with an independent juridical personality and financial status. SFD contributes to financing development projects in Arab and developing countries through loans and grants. The Fund is chaired by the Saudi Minister of Finance & Economy while the Vice Chairman and Managing Director enjoys executive authority and is in charge of implementing BOD resolutions.
• Egypt has benefited from SDF since 1975, having received several loans contributing to the establishment and development of several projects in different economic and social development state sectors. Among the most significant projects are the development of the Suez Canal, the Egyptian Railway, cotton gins, the construction of Cairo- Assuit road, the construction of Daqahlia beet sugar plant and the Sinai Desert irrigation canal.
• The Saudi government provided Egypt with a grant in 1990 in the amount of USD 500 million for financing development projects under the supervision of the Central Bank of Egypt (CBE). The balance amounting to approximately USD 35 million will be allocated to priority projects that will be agreed upon.
• In 2000, Egypt and SFD signed a Letter Agreement by virtue of which SFD will finance a number of development projects with approximately SR 375 million. Within this context, several loan agreements were signed, the last of which are two agreements signed on 16 February 2007, contributing to financing the Social Development Fund (SDF) projects and to the establishment of health care centers in several Egyptian governorates.
• Following the Egyptian Revolution of 2011, Saudi Arabia pledged to grant Egypt economic aid worth USD 3.950 billion, distributed as follows:
1- USD 1.450 billion under the supervision of SFD in coordination with MOIC, divided as follows:
• A line of credit for financing non-oil exports worth USD 750 million. The first tranche worth USD 250 million was signed on 7 October 2012 concerning the Saudi Exports Program in favor of Egyptian General Petroleum Company (EGPC).
• Soft loans worth USD 500 million as a contribution to financing development projects of priority to the Egyptian Government. Three final agreements worth USD 230 million were signed for financing 3 development projects during SFD’s Vice Chairman’s visit to Egypt on 3 December 2012.
• A grant for SME’s worth USD 200 million.
2- USD 1.5 billion to the Ministry of Finance allocated to date as follows:
• USD 1 billion to support the state budget on two trenches, one provided in May 2011 and the second in the form of treasury notes and bonds in June 2012.
• USD 500 million as a soft loan for supporting the budget deficit.
3- An 8-year bank deposit worth USD 1 billion at CBE as of 28 May 2012, upon signing the relevant agreement at the sideline of the World Bank spring meetings held in Washington in April 2012.
Latest aspects of cooperation :
Two loan agreements were signed for the 750MW West Damietta Power Plant Expansion Project and the 1500MW Youth Power Plant Expansion Project.