Will Saudi-Egyptian geopolitical partnership push for economic integration? : increasing interdependencies

Abstract

Since the outbreak of the Arab revolutions in 2011, geopolitical developments have reinforced the already deep security and economic interdependencies between Egypt and Saudi Arabia. Will this partnership push for deeper forms of economic integration? This report argues that even though the current geopolitical context has created long-term prospects for a deepened geostrategic partnership, it will unlikely lead to further economic integration between the two nations. Instead, it has intensified earlier forms of rent recycling in the form of workers’ remittances, inter-governmental aid or loans and investments by often politically-connected businessmen.