UPDATE 1-Saudi crown prince visits Cairo to discuss investment, Middle East crises, sources say

(Adds details, background)

CAIRO, Oct 15 (Reuters) – Saudi Arabian Crown Prince Mohammed bin Salman is visiting Cairo on Tuesday to discuss trade and investment as well as the crises in Lebanon and the Palestinian territories with Egyptian President Abdel Fattah al-Sisi, Egyptian diplomatic sources said.

The visit comes amid speculation about potential Saudi investments in Egypt, which has received a major influx of external financing this year including a record $35 billion deal with UAE sovereign fund ADQ.

Egypt’s prime minister said last month that Saudi Arabia was planning to invest $5 billion in Egypt, independently from funds the Gulf state has deposited in the Egyptian central bank.

Possible targets of investment include two sites for tourism developments on Egypt’s Red Sea coast and in the south of its Sinai peninsula, both of which are opposite Saudi Arabia.

Egypt has been seeking large-scale investments as it tries to overcome a long-running economic crisis that led to record inflation, a rising debt burden and sharp currency devaluations over the past two years.

The crown prince, known as MbS, made his last official visit to Egypt in 2022.

In talks with Sisi he was expected to discuss bilateral relations with a focus on trade and investment, as well as regional affairs including the crises in Lebanon and the Palestinian territories, the diplomatic sources said. (Reporting by Mohamed Waly; Writing by Aidan Lewis; Editing by Hugh Lawson)

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