Analysts: Morsi visit to Saudi Arabia represents important step

King Abdullah of Saudi Arabia speaks to Egyptian President Mohamed Morsi on his arrival at the Royal Palace in Jeddah. [Handout/Reuters]

King Abdullah of Saudi Arabia speaks to Egyptian President Mohamed Morsi on his arrival at the Royal Palace in Jeddah. [Handout/Reuters]

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Egyptian investors and economic analysts said President Mohamed Morsi's visit to Saudi Arabia was one of the most important steps he has taken since he assumed office.

During his trip to the kingdom on Wednesday (July 11th), Morsi held talks on a variety of economic issues. He chose Saudi Arabia as his first foreign visit after his election to demonstrate Egypt's strong ties with one of its most crucial economic supporters.

Dr. Yasser Ali, acting spokesman for the Egyptian presidency, said Saudi leaders agreed to increase the kingdom's investments in Egypt, according to the Middle East news agency.

Both sides agreed that "more work opportunities in the kingdom will be provided to skilled Egyptian labour and all outstanding issues and land connection problems impeding the flow of trade and investment will be resolved", Ali told the news agency.

'Timely' visit

Cairo University economics professor Dr. Yahia Salem said Morsi's visit "came at the right time to save the Egyptian economy and lift it out of the trouble it has encountered since the January revolution, the decline in foreign capital, and the departure of investors."

"The visit is of great importance not only in terms of the relations between the two countries but also given the socioeconomic situation in the region as a whole, especially as the new world order now espouses bi-lateral alliances and regional coalitions based on economic considerations," Salem said.

As a major source of financial aid and direct investment for Egypt, the Kingdom has deposited $1 billion into the Central Bank, provided grants worth $500 million to support the economy and $250 million to support natural gas imports to Egypt, Salem said.

Meanwhile, Saeed Abdul Ghani, a member of the Egypt-Saudi Business Council, said, "Businessmen in both countries are interested in this visit and will be its main beneficiaries in light of the relative decline in investment relations that occurred in the past period and the numerous outstanding [legal] cases involving Saudi investors in Egypt, which hindered the flow of new investments."

Abdul Ghani said businessmen will make "significant efforts to stimulate investment and restore confidence among Saudi businessmen".

"Saudi Arabia's economic and political gravitas will encourage Gulf investors to return," he said, adding that he expects a recovery in real estate, industry and the stock market, which will in turn stimulate trade and joint agreements.

Abdul Ghani said that according to Business Council data, Saudi Arabia ranks first among Arab countries in terms of investment volume in Egypt. He said 36% of investments are in industry, 28% in services and financing, and 16% in tourism and hospitality.

He added that there are 2,315 investment projects worth $2.8 billion, and the volume of trade exchange between the two countries reached $4.4 billion in 2011.

Status of Egyptian workers

Majed al-Mahmoud, head of the Workers Bureau of the Emigration and Egyptians Abroad Sector in the Ministry of Manpower and Emigration, said, "It is not surprising that the issue of Egyptian workers in the kingdom featured prominently in the talks because remittances from Egyptian expatriates constitute one of the pillars of the Egyptian national economy and an important source of foreign currency."

There are about two million Egyptian expatriates in the Kingdom, but officials estimate that the actual number is much higher, al-Mahmoud said.

He added that Morsi and Saudi leaders also discussed the prospect of conducting a census to verify the actual number and validate the ex-pats legal status.

He said the talks also focused on preventing legal cases from becoming a source of tension that could harm bilateral relations as happened recently with the case of Ahmed al-Gizawi. The detention of the human rights lawyer in Saudi Arabia in April triggered protests in Egypt and the closure of the Saudi embassy in Cairo.

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  • READER COMMENTS

    دينا الرفاعي

    2013-3-14

    O God! unify the Arab nation

  • سالم شاكر

    2012-8-26

    During the presidential elections, the Egyptians voted in the presidential elections sincerely and powerfully. They allowed the ballot boxes to have the final word and the result was the success of the candidate Dr. Muhammad Moursi, who won in the presidential elections for 2012 in a 4-year term. He would work on achieving more success and progress to the country. He would also improve the economic, industrial, and social development rates in all the fields of life in Egypt. The elections were fair and Dr. Moursi achieved sweeping success and assumed the presidency. Congratulations to President Moursi and a million congratulations to the Egyptians. Congratulations to them on the freedom and the democracy as well as the independence and getting rid of the aggression and justice in Egypt. Congratulations on the unity and victory over the oppression and the corruption. Congratulations to the Egyptian people and we ask God to help and protect them.

  • Teto

    2012-8-24

    I congratulate the new government assuming their positions, but they must think of Allah in serving the interests of the people. They must do a lot of reforms to change the future of Egypt from bad to better, especially as there are so many previous governments that did not work on bringing reforms to the sectors in Egypt but they increased ruining them not to mention the theft carried out by many members of the government. They caused many disasters to the Egyptians, and hence the Egyptian economy decreased and a lot of important sectors were marginalized. The former government has messed up during the reign of the former regime. Many sectors caused the suffering of the Egyptians and they made the thing worse when a lot of services were no longer available for the Egyptian citizen. There are also situations of poverty and unemployment which have become common in many Egyptian cities. The future of the agriculture and the industry has been eliminated and the Egyptians no longer have any door in order to improve their situation. The government should be developing the agriculture with all the strength as they can. Egypt has been one of the largest natural cotton, rice and wheat exporting States. It has been importing these products from overseas but was causing a lot of decline in the treasury of the state. Therefore this should encourage the farmers to cultivate everything they need from water sources or affordable raw materials. They have been neglecting the farmers and are no longer providing them with raw materials. They also increased the costs and burdens over them in order to destroy the future of the agriculture in Egypt so that they can steal as they wish.

  • فخري جليل

    2012-8-24

    If I talked about President Morsy, I see goodness in him and that he wants to help achieve the renaissance of Egypt because he comes from the common people. He cares about the extent of their suffering and their need. I am proud of him as he is a decent man who is known by everybody. Despite the challenges that he encountered, he never let those crises hinder him. He faced every challenge and now he is trying in various ways to promote his country.

  • جلال احمد

    2012-8-18

    Certainly, the future of democracy in Egypt will be determined through the relationship between the two fundamental forces that are governing the Egyptian scene and affecting the street without forgetting, of course, the role played by the youth of the revolution in moving the society, highlighting the demands of democracy and defending the principles of the revolution. Despite the robust situation of these young people now, once the things settle down and the political scramble begins, their capacity to organize themselves in political bodies will appear to ensure them a voice to determine the major options of the country. This may not be so soon, but it is expected that the revolutionary powers would organize their ranks by the time. It remains a fact that the main two forces, the military and the Muslim Brotherhood, would respect the rules of the political game and not allow themselves to be dragged along to the temptation to seize power and the exclusion of the rest of the political sensitivities. Perhaps the first body that must be aware of this, given after the fierce community resistance encountered since the outbreak of the revolution, is the brotherhood. Many categories of the Egyptian people realized their attempts to control the Parliament and then progressed to the Presidency with a candidate who belonged to them, but rather controlled the formation of the constituent assembly to rewrite the Constitution to try to capture the power and change the features of the Egyptian State, which was reflected in the decline of their popularity by a large proportion as the results of the presidential election showed.

  • خالد

    2012-8-15

    I would like to congratulate the brave Egyptian youth who have proven to the entire world that they have a case and that thanks to their unity and determination they have managed to achieve what other parties have failed to fulfill. In fact, the youth have faced injustice and the oppressive dictatorship which never wanted the well-being of Egypt or Egyptians. Thus, these brave youths have put an end to these corrupt governments. They have also fulfilled the most wonderful achievements for Egypt and the long Egyptian history. In fact, what the Egyptian youth revolution has fulfilled has been the best evidence that the youth has enough strength and determination to take a firm stance against injustice and tyranny. They have entered history from its widest gates through what they have planned thanks to their patience, heroism, bravery and determination to overthrow the corrupt and dictatorial government. Therefore, we have to congratulate Egyptians for the grace of proving their existence which they needed for a long time. In fact, Egyptians have been deprived of their right to vote which is the most important role of citizens in any place in the world. Egyptians have also been deprived of any role in choosing their president or any official in any sector. Thus, we should congratulate Egyptians for the success of the elections despite their unconstitutionality. We should congratulate them temporarily until Allah will distinguish the malicious from the good.

  • حبيب هادي

    2012-8-8

    We want there to be a concrete cooperation which work to help the country out of the slope that it can fall in. Egypt is the heart of the Arabic nation and no one will be able to overthrow it. The Egyptians have deservedly proven that they are extravert people who can develop themselves, despite the existence of some categories that cause problems in many sectors of our nation. The corruption is used to be the number one enemy of the Egyptians. It is the one that worked on the tardiness of the country and reached what it has reached today. Therefore, the new President must take into account the interests of the people. He must know that, as we have been the cause of his entry to the palace of rule, we can extricate him from it. The new President must seek to reform many sectors that the citizen needs for his life to be on the right track. The Egyptians are waiting the achievement of the promises of the new President and they are waiting for them to be realized.

  • اياد

    2012-8-3

    Mursi visited Tahrir Square and toured among the demonstrators and made a speech to them and talked about things concerning Egypt's internal and external matters. In the speech Mursi is encouraging the future of his policy especially. His emphasis is on respect for the judiciary, the police and the armed forces and its commitment to ensuring the freedoms and rights of the martyrs, and also appreciation of international conventions signed by Egypt. His statements dispelled rumors in advance of his intention to settle scores with some movements and institutions that were not on good terms with the Muslim Brotherhood. He urged the elected president to achieve the demands of the January revolution and to take the practical measures on the ground, emphasizing the sincere desire to make a comprehensive change revolution to satisfy the aspirations of all the loyal people of this country.

  • هدى جبر علي

    2012-7-28

    Our beloved Egypt passed through periods of tension, worry, fear, and lack of trust between all the speaking parties. There was no distinction between righteousness and falsehood in the scene. This did not happen due to the incompetence of the Egyptians, but rather due to the hypocrisy, lies and false promises from some untruthful parties and hypocrites who claimed to have clear intention and wish for peace and stability. Now our beloved Egypt enters a new age after the success of our glorious revolution that gained the admiration of appreciation of the whole world and the success of the presidential elections ending with Dr. Muhammad Morsi's winning as the President of the Arab Republic of Egypt. It is an age that people have been waiting for a long time after an old age that remained, an age in which everything that is difficult and bitter remained for so long. It is an old age filled with corruption, theft, plunder, and oppression by the hand of the ruler and his entourage. It was an age in which the Egyptian citizen was the cheapest thing. It was an age in which every green (fresh) thing died in the hearts and minds of every Egyptian. It was an age in which ambition has become stupid because it is a farfetched dream that will never be reached by the dreamer under the bad and barren circumstances of the country. It was an age in which diseases spread due to deception and cheating in everything and anything even food, water, medicine, and engineering. Therefore, everything that is wrong and unattainable has become right and attainable in return for bribery and similar activities.

  • ام كريمة

    2012-7-15

    I felt that there is hope for Egypt, with Morsi winning the presidential race!

  • جليل مسعود

    2012-7-15

    Congratulations to all the people who challenged the repressive tactics of the former regime and were not intimidated by all the means used by the government of killing, torture and imprisonment and insult and preferred to demolish the citadel of government and were not intimidated by the repressive tactics of the government and immoral stand and stood up in its face and challenged it. And in the end the government of Hosni Mubarak bowed to the will of the people and left power and opened the way for the country of democracy that entered through the wider doors. The people must win since they have the courage and magnanimity, and they want to say we have grown tired of our situation and we must keep up with progress around us and be a part and contribute in this progress instead of being a stumbling block in the progress of our people and others. It is our duty to support this government to have prosperity and progress for the Egyptian people, and to prove to the world that the nation's will is stronger than all the dictators and fascism.

  • مالك صباح

    2012-7-15

    After Dr. Morsi took office world was concerned that Egypt would turn into an Islamic state, but Dr. Morsi, after assuming the reins of government assured that he seeks to form a government that includes all segments of the Egyptian people, he respects the agreements and past treaties, respect the good-neighborly relations and he has a wise way of approaching the events in Egypt and the world.

  • علاء قادر

    2012-7-15

    The success of the Egyptian revolution led by the young people had a number of reasons that helped it to succeed. The young people's faith in the justice of their cause and demands in order to achieve them was one of the most important reasons, and also the fair demand of youth for freedom and to raise their role in Egyptian society, played a role in the success. Also, the fact that that the former regime was corrupt and repressive and harmed all Egyptian people was the most important reason that made everyone come out to the streets and condemn the dictatorial regime in Egypt. The great awareness which suffused the Egyptian people had a major role in the success of this revolution through the unprecedented solidarity, cooperation, and agreement in the views and demands and gathering the demonstrators masses around each other and support each other. Also the spirit that came out with everyone proved to the whole world that revolutions could fell dictatorships without using force, vandalism and the ways which we used to see to overthrow regimes; where the clear insistence that we have seen in the Egyptian youth and the wonderful patience and sleeping in the streets despite the weather conditions experienced by the Egyptian citizens, proved to the tyrant Mubarak that this people will remain until they eliminated his regime and brought this dictator to a complete conviction that he should leave inevitably, because the patience of the people was finished and he could not convince them through speeches. This was one of the most important reasons for the success of the revolution of Egyptian youth which became a model for revolutions.