Talks between Cairo and Riyadh for the second tranche of the USD 1.5 bn loan to develop the Sinai are on hold after the Administrative Court in Cairo issued a ruling earlier this month rejecting the transfer of the Red Sea islands Tiran and Sanafir to Saudi Arabia, Amwal Al Ghad reports. Political tension between the two countries has also been rising recently due to disagreements over the situation in Syria and Yemen. The agreement with the Saudi Fund for Development was signed in March 2015 and the first USD 300 mn tranche was delivered in August last year. President Abdel Fattah El Sisi officially ratified the agreement last week in a decree, according to Ahram Gate. This would be the second major piece of economic assistance the Saudis hold back in its temper tantrum against Egypt, after Aramco practically and unilaterally cancelled fuel shipments to the country.

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