Egypt and Saudi sign MoUs to deepen cooperation in the automobile and mining sectors

Saudi Arabia and Egypt have been working to grow their share of the global automobile industry and supply chain.

Egypt and Saudi Arabia signed two MoUs to develop non-oil exports including developing their automobile and mining industries.

Currently, nearly half of the Saudi-Egypt volume of trade is refined petroleum. The MoUs aim to increase areas of trade beyond oil inline with Saudi Vision 2030 which seeks to reduce the economy reliance on hydrocarbons.

Saudi Arabia and Egypt have been working to grow their share of the global automobile industry and supply chain. Particularly, both countries have sought international and regional partnerships to build their first electric vehicle in bid to gain a share in the transformation of the global automobile economy and achieve more independence from foreign brands similar to what Iran and Turkey have managed to achieve. On the mining front, both countries are seeking an extensive role in the global chip manufacturing supply chain by diversifying further into minerals.

The news comes at a time when tension levels have risen in the past few months as Saudi voiced concerns about the slow pace of economic reforms in Egypt including the continued strong rule of state ownership (e.g. the military) and slow privatisation of state-owned enterprises. The new deals signal improved relations, but economic ties remain constrained by lack of openness and free market access.