The government is preparing for all scenarios: Prime Minister Moustafa Madbouly explained at his weekly press conference that the government is preparing for all potential scenarios in the region amid escalating tensions around Israel’s war on Gaza and Lebanon. Madbouly also provided a few more nuggets of information about what to expect from growing Egyptian-Saudi economic ties.

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Madbouly focused on the economic impact of a broadened conflict, saying that the government was making contingency plans for escalation that leads to disruptions to trade, transport, and logistics networks. He also noted that the government is preparing plans for a situation in which escalating reciprocal attacks target regional oil and nuclear facilities, threatening to send the conflict spiraling out of control. Such a scenario would have “far-reaching consequences for energy prices and the movement of goods, including to Egypt,” he said, adding that “our role as a government is to be prepared for all eventualities.”

We got some clarity on “wartime economy”: Addressing recent discussions about Egypt’s preparedness for further regional escalation, Madbouly clarified comments he made last week about the possibility that further escalation might force Egypt into war economy mode. “What I meant was that if the situation escalates into a regional war, Egypt would turn to what’s known as a ‘war economy,’ which means directing all state resources to secure basic needs … to ensure minimal impact on the Egyptian people,” he explained.

His message to the people: Madbouly emphasized the need for national unity in the face of regional tensions. “President Abdel Fattah El Sisi made it clear that these regional challenges require a very high level of unity from the Egyptian people to safeguard the nation’s assets and achievements,” he said.

Madbouly assured citizens that there is no need to fear external threats: “It’s essential for the Egyptian people to remain aware of the unprecedented regional challenges and stay resilient,” said Madbouly.

MORE DETAILS ON GROWING EGYPT-SAUDI ECONOMIC TIES-

On the economic front, the PM touched on the potential for local currency transactions between Egypt and Saudi Arabia. “The use of local currencies in cooperation and investment between Egypt and Saudi Arabia will be done through agreements and coordination between both countries’ central banks,” he said, explaining that the logistics of the move is being studied and will be implemented once a final decision is reached.

What sectors are Saudi investors interested in? The Saudi side will initially target the industrial, tourism, renewables, and urban development sectors, Madbouly said.

The press conference came one day after President El Sisi and Crown Prince Mohammed Bin Salman’s meeting on Tuesday, where the two heads of state signed an agreement to form the Egyptian-Saudi Supreme Coordination Council, which will be co-chaired by them personally, in addition to the bilateral Agreement on Promotion and Mutual Protection of Investments.

That’s not all: Both sides issued a joint statement wrapping up the crown prince’s visit and highlighting future areas of cooperation — CIT, logistics, combating corruption, culture, tourism, higher education and scientific research, media, industry and mining, and environment protection.

SPEAKING OF SAUDI INVESTMENTS- USD 15 bn worth of Saudi investments incoming? Egypt-bound investments from the Saudi private sector totaling USD 15 bn have already been agreed and were awaiting the rubber stamping of the agreement, chairman of the Egyptian-Saudi Joint Business Council Bandar Al Ameri told Al Arabiya. Al Ameri pointed to the renewables, industry, real estate, tourism, and tech sectors as targets of the investments.

Don’t hold your breath: The agreement will be implemented within the coming two months once the legislation receives the regulatory greenlight from both sides.

We heard that this might be in the cards: We heard in September that Madbouly’s government is in talks with major private-sector companies in Saudi to invest USD 10-15 bn in Egypt in different sectors, including renewable energy and seawater desalination.

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