{"id":661821,"date":"2025-03-05T00:00:00","date_gmt":"2025-03-05T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/03\/05\/egypt-saudi-bilateral-investment-agreement-gets-saudi-cabinets-greenlight\/"},"modified":"2025-03-05T00:00:00","modified_gmt":"2025-03-05T00:00:00","slug":"egypt-saudi-bilateral-investment-agreement-gets-saudi-cabinets-greenlight","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/03\/05\/egypt-saudi-bilateral-investment-agreement-gets-saudi-cabinets-greenlight\/","title":{"rendered":"Egypt-Saudi bilateral investment agreement gets Saudi cabinet\u2019s greenlight"},"content":{"rendered":"

Good afternoon folks, and happy Wednesday. <\/strong>Despite the Ramadan news slowdown we have another busy issue for you, with all the latest on our bilateral investment agreement with Saudi Arabia, Google\u2019s slide from workers\u2019 paradise to purgatory, and the best things to watch and eat this week.<\/p>\n

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THE BIG STORY TODAY<\/p>\n

#1- Saudi Arabia\u2019s cabinet has <\/strong>greenlit<\/a><\/strong> a <\/strong>Egypt-Saudi bilateral investment agreement<\/a><\/strong> first proposed last September<\/strong> that is expected to help protect Saudi investors as they ramp up investment in Egypt. The agreement, which had initially been expected to come into effect by December, follows a directive from Crown Prince Mohammed bin Salman to the country\u2019s Public Investment Fund to allocate USD 5 bn to investments in Egypt as part of the \u201cfirst phase\u201d of a wider investment program. The conclusion of the bilateral investment agreement could see investments rise to upwards of USD 10 bn<\/a> over the next three years, according to previous statements by chairman of the Egyptian-Saudi Joint Business Council Bandar Al Ameri.<\/p>\n

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#2- <\/strong>New gov\u2019t grow<\/strong>th figures estimate GDP growth to accelerate to 4.5% in FY 2025-26:<\/strong> Planning and International Cooperation Minister Rania Al Mashat said that the government expects growth to accelerate to 4.5% in FY 2025-26, up from the government\u2019s projection of 4.0% by the end of FY 2024-25, with growth coming \u201cdespite challenges posed by global protectionist trade policies,\u201d she said in an interview with CNN<\/a>.<\/p>\n

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THE BIG STORY ABROAD<\/p>\n

As the int\u2019l presses continue to digest US President Donald Trump\u2019s <\/strong>first speech to the<\/a><\/strong>US Congress<\/a><\/strong> since his inauguration <\/strong>\u2014 which saw Trump defend<\/a> his recent tariff spree, lay out planned tax and spending cuts, and signal his interest in defunding<\/a> the CHIPS Act<\/a> \u2014 global headlines are turning toward Europe, as Germany prepares to relax decades-long restrictions on borrowing in order to fuel increased defense and infrastructure spending.<\/p>\n

A fiscal sea change could be heading Germany\u2019s way: <\/strong>Head of Germany\u2019s center-right Christian Democratic Union (CDU) Friedrich Merz announced<\/a> late yesterday that the CDU and its sister Bavarian party had reached an agreement with the country\u2019s center-left Social Democratic Party (SDP) to overhaul constitutionally enshrined borrowing rules and establish a EUR 500 bn infrastructure fund in a bid to revitalize the country\u2019s economy and fund higher defense spending. The move, which the parties will present to Germany\u2019s parliament next week, would exempt<\/a> defense-related borrowing from the existing 1% of GDP cap.<\/p>\n

Market reax:<\/strong> German borrowing costs surged<\/a> in the hours after the news, with the yield on the country\u2019s 10-year bonds rising 0.19 percentage points to 2.67% \u2014 its largest one-day move since 2020. Meanwhile, the EUR rose to its highest level against the greenback in four months, reaching USD 1.071, as European defense stocks continued their rally that began last week. Deutsche Bank economists speaking to the FT noted the gravity of the move, saying that it represents \u201cone of the most historic paradigm shifts in German postwar history.\u201d<\/p>\n

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