Egypt’s Sisi makes sudden visit to Saudi Arabia

ByNews Desk- The Cradle 

The visit comes as Egypt is embroiled in a severe economic crisis which has seen its currency value plummet significantly

Egyptian President Abdel Fattah al-Sisi made a sudden visit to Saudi Arabia on 2 April and was received in Jeddah by the kingdom’s Crown Prince Mohammed bin Salman (MbS) and a number of other officials, the state-run Saudi Press Agency (SPA) reported.

Also attending the meeting were Saudi National Security Advisor Musaad bin Mohammed al-Aiban and Egyptian intelligence chief Abbas Kamel.

During the “fraternal meeting,” the Saudi and Egyptian leaders discussed bilateral ties and regional developments, as well as ways to enhance “prospects for joint cooperation …  in various fields,” SPA said.

The meeting comes as Egypt is facing a severe economic crisis and has undergone a major devaluation in its currency. As a result, the country is currently involved in an agreement with the International Monetary Fund (IMF), reached in December last year, aimed at providing Egypt with a $3 billion bailout package.

However, many have suggested that the devaluation of Egypt’s currency is linked to the fact that it had been pegged to the US dollar until 2016. While Egypt has taken several steps to complete the deal, including making changes to its foreign exchange rate, Cairo has also expressed an intention to move away from Washington’s currency.

Last year, the Egyptian central bank announced that it is looking to develop a plan to “change the culture” of being linked to the greenback.

Saudi Arabia came to Egypt’s financial aid following the exacerbation of its economic situation in the aftermath of the Ukraine war – making significant deposits to its central bank and vowing new major investments in the country.

The meeting in Jeddah also comes as a regional diplomatic and economic shift is underway.

As part of this shift, Saudi Arabia and Egypt have both warmed up ties with Syria. Meanwhile, Iran and Tehran have reached a historic agreement to resume relations, and Cairo and Ankara have been moving closer toward rekindling positive ties after a long period of tension following Sisi’s overthrow of the Muslim Brotherhood-affiliated government of Muhammad Mursi.

As western nations face a brutal energy crisis as a result of aggressive sanctions against Russia, this regional shift has also seen the countries of West Asia scale back economic ties with the US.

Just yesterday, a number of OPEC+ nations led by Saudi Arabia announced yet another reduction in oil production levels – which resulted in a six percent rise in global oil prices.