MBZ Hosts Sisi as Saudi Arabia and UAE Jockey for Regional Influence
ABU DHABI — United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan (MBZ) hosted Egyptian President Abdel Fattah el-Sisi in Abu Dhabi this week, a high-level meeting that underscores the deepening economic and strategic alliance between the two nations. The visit comes as observers note an intensifying, albeit quiet, competition between the UAE and Saudi Arabia for regional influence, particularly regarding their respective economic footprints in Egypt.
The meeting highlights the pivotal role the UAE has played in stabilizing Egypt’s economy over the past year. Central to this relationship is the landmark $35 billion investment deal signed in February 2024 for the development of Ras El Hekma, a prime stretch of Mediterranean coastline. The deal, spearheaded by the Abu Dhabi sovereign wealth fund ADQ, provided Cairo with immediate and critical foreign currency liquidity, effectively averting a looming financial crisis and allowing the Egyptian government to stabilize its currency.
Analysts point to this massive capital injection as a significant shift in the dynamics of Gulf aid to Egypt. While Saudi Arabia has historically been a primary financial backer of Cairo through central bank deposits and oil shipments, Riyadh has recently pivoted toward a policy of “investments, not handouts,” demanding tangible returns and structural reforms. This shift has created an opening for the UAE to aggressively expand its influence through high-profile acquisition of strategic assets, from logistics and ports to luxury real estate.
The “jockeying for influence” referenced in recent reports suggests that while Riyadh and Abu Dhabi remain close strategic allies, their economic visions are increasingly divergent. The UAE’s willingness to deploy rapid, large-scale capital has secured it a dominant position in Egypt’s emerging privatization landscape. In contrast, Saudi Arabia has adopted a more cautious investment approach, navigating its own massive domestic capital requirements for Vision 2030 projects.
Beyond economics, the leaders discussed pressing regional security issues, including the situation in Gaza and the ongoing conflict in Sudan. However, the timing of the visit reinforces the centrality of the economic partnership. For President Sisi, maintaining the flow of Gulf investment is existential for Egypt’s recovery. For Sheikh Mohamed bin Zayed, the partnership solidifies the UAE’s status as a decisive power broker in North Africa, capable of shaping the economic trajectory of the Arab world’s most populous nation.
As Egypt continues to navigate its economic recovery, the interplay between its two wealthiest Gulf partners will likely define the pace and direction of its growth. The meeting in Abu Dhabi signals that, for now, the UAE’s strategy of direct, high-stakes investment is yielding significant geopolitical dividends.
* al-monitor.com
* middle-east-online.com
* theafricareport.com
* washingtoninstitute.org
* azcb.co
