Cairo for a Future Strategy with OFID

Egyptian Minister for International Cooperation Rania al-Mashat (Asharq Al-Awsat)
Egyptian Minister for International Cooperation Rania al-Mashat (Asharq Al-Awsat)
TT
20

Cairo for a Future Strategy with OFID

Egyptian Minister for International Cooperation Rania al-Mashat (Asharq Al-Awsat)
Egyptian Minister for International Cooperation Rania al-Mashat (Asharq Al-Awsat)

Egyptian Minister for International Cooperation Rania al-Mashat has confirmed that Arab financial institutions led by Saudi Arabia have provided $9 billion for the advancement of Sinai, noting that the Kuwait Fund supports technical studies of the railway link project between Egypt and Sudan through a grant of $2.5 million.

Al-Mashat revealed that efforts are underway to put in place a future strategy with the OPEC Fund for International Development (OFID).

“Arab financial institutions play a strong role in supporting economic and social development programs in member states, and Egypt is a major contributor to Arab financial institutions and bodies, and we have implemented many model development projects with these institutions, on top of which is the Sinai Peninsula Development Program,” al-Mashat told Asharq Al-Awsat on the sidelines of a recent meeting in Jeddah.

Moreover, al-Mashat drew attention to the results of discussions she recently held with OFID officials, especially considering joint efforts to back efforts to transition to a green economy.

These consultations resulted in several projects such as the 650-megawatts Assiut Power Plant project, which is financed by OFID with a whopping $35 million.

OFID is also supporting the second phase of developing and rehabilitating irrigation stations to reduce water losses. It is pumping $53.2 million into the project.

Al-Mashat added that the project to develop small, medium, and micro enterprises to enhance efforts to create job opportunities, at a value of $95 million, also comes as part of the efforts to transition to a green economy as well.

Other than being a part of transitioning into a green economy, the project also comes as part of the efforts to place a future strategy with OFID to maximize development cooperation efforts, support national priorities, especially with regard to climate action efforts, and stimulate the participation of the private sector in development.

Al-Mashat stressed that Arab financing support enhances the achievement of sustainable development goals in the Arab world, stimulates joint Arab economic action and confronts urgent challenges facing development effort.

She noted that her country has been associated with effective development cooperation and strategic partnerships with Arab financial institutions.

This association crystallized through the financing of many priority development projects in many vital sectors such as electricity and energy, transportation, health, housing, desalination and treatment plants, higher education, scientific research, and agriculture.

Al-Mashat reaffirmed that partnerships between Arab funds and her country are still existing and continuing despite the challenges brought about by the coronavirus pandemic.

She noted that the partnerships continued as a success story between the Egyptian government and Arab financial institutions thanks to the flexible policies and proactive plans they prepared to deal with the crisis.

Al-Mashat added that Egypt is one of the Arab countries that contributes the most to the capital of Arab financial institutions and bodies.

According to the minister, Egypt contributes to the capital of the Arab Fund for Economic and Social Development, which amounts to $599 million.

The Northeast African country also contributes to the capital of the special account to finance small and medium private sector projects in Arab countries with a value of $20 million, and the Arab Investment Guarantee Corporation, with a value of $6.2 million.



Azerbaijan Proposes Joint Investment Fund with Saudi Arabia to Strengthen Economic Partnership

Key agreements were signed during the 8th session of the Saudi-Azerbaijani Joint Committee. (Asharq Al-Awsat)
Key agreements were signed during the 8th session of the Saudi-Azerbaijani Joint Committee. (Asharq Al-Awsat)
TT
20

Azerbaijan Proposes Joint Investment Fund with Saudi Arabia to Strengthen Economic Partnership

Key agreements were signed during the 8th session of the Saudi-Azerbaijani Joint Committee. (Asharq Al-Awsat)
Key agreements were signed during the 8th session of the Saudi-Azerbaijani Joint Committee. (Asharq Al-Awsat)

In a significant step toward deepening economic and strategic ties, Azerbaijan is working to transform its growing partnership with Saudi Arabia into tangible investment initiatives.

At the forefront of this effort is a proposal to establish a joint sovereign investment fund that would support priority sectors in both countries and finance joint ventures in third markets. The plan, revealed by Azerbaijani Ambassador to Saudi Arabia Shahin Abdullayev in an interview with Asharq Al-Awsat, reflects Baku’s intention to build on the momentum of recent high-level engagements and turn bilateral cooperation into long-term, shared economic value.

The proposed fund comes in the wake of the 8th Saudi-Azerbaijani Joint Government Committee meeting held in Riyadh in April, co-chaired by Saudi Investment Minister Khalid Al-Falih and Azerbaijani Deputy Prime Minister Samir Sharifov.

The talks resulted in several memorandums of understanding covering energy, transport, logistics, and water, as well as endorsement of recommendations from the 6th Saudi-Azerbaijani Business Council.

Abdullayev highlighted the rapid growth in ties between Baku and Riyadh across multiple sectors, especially energy, investment, tourism, and culture. He praised Saudi-based ACWA Power for its role as a leading investor in Azerbaijan’s renewable energy sector.

In 2024, both countries signed a joint executive program during COP29 in Baku, aimed at strengthening cooperation in renewable energy development and transfer. The agreement was signed in the presence of Saudi Energy Minister Prince Abdulaziz bin Salman and Azerbaijani President Ilham Aliyev. It includes large-scale wind power projects with a combined capacity of 2.5 gigawatts, along with battery-based energy storage systems.

The ambassador noted that Azerbaijani Economy Minister Mikayil Jabbarov proposed the creation of a joint sovereign wealth fund during a visit to Riyadh in December 2024. The fund would target priority sectors outlined in both countries’ economic agendas and invest in third countries as well.

Abdullayev underscored the importance of finalizing an investment protection agreement between the two nations, along with offering incentives to encourage Saudi investors to explore opportunities in Azerbaijan’s free economic zones. Areas of cooperation under discussion include oil, renewables, industry, tourism, infrastructure, agriculture, livestock, and mining.

Tourism is another bright spot in the growing partnership. More than 100,000 Saudi tourists visited Azerbaijan in 2024, up over 31% from the previous year. The ambassador expects further growth through the development of joint tourism programs, sustainable tourism initiatives, and shared exhibitions and events.

On the strategic level, Abdullayev emphasized the importance of Azerbaijan’s oil policy, initiated by former President Heydar Aliyev, as a foundation for national development. That strategy has enabled Azerbaijan to invest in key sectors such as infrastructure, education, and healthcare, positioning the country as one of the region’s most advanced economies.

Azerbaijan also plays a vital regional role in energy security through its major pipeline projects, including the Baku-Tbilisi-Ceyhan oil pipeline and the TANAP and TAP natural gas lines, which serve European markets.

The ambassador highlighted Baku’s successful bid to host COP29 as a sign of Azerbaijan’s growing global presence. The conference resulted in a pledge urging developed nations to allocate $300 billion annually by 2035 to help developing countries mitigate climate change impacts.

He also praised Saudi Arabia’s humanitarian support, particularly through the King Salman Humanitarian Aid and Relief Center, which signed a demining agreement in January 2024 to assist in clearing liberated areas in Azerbaijan, a step that has helped accelerate reconstruction and enable safe civilian return to their homes.