Rift between Saudi Arabia and Egypt remains, even if diplomats say everything is okay: Egyptian real estate companies have halted projects that were set to be implemented in Saudi Arabia, according to Reuters. Talaat Moustafa Group (TMG), Al Ahly for Real Estate Development, Orbit Alliance, and Misr-Italia Group had all signed MoUs to build houses in Saudi Arabia during King Salman’s visit to Egypt last April. TMG had explained at the time that it was going to assess developing housing projects on land provided by the Saudi government and, in return, will receive ownership of a number of units it constructs to compensate for the price of land. Al Ahly’s Chairman Hussein Sabbour said his company withdrew because of “because of worries over tensions between Egypt and Saudi Arabia,” despite having completed preliminary plans for the project. Misr-Italia said contact with their Saudi counterparts stopped since June and “the agreement was canceled due to a lack of cooperation from the Saudi side.” USD 22.65 bn worth of agreements and project MoUs were signed during Salman’s visit.

Egypt’s Foreign Affairs Ministry has insisted there is no need for mediation with Saudi Arabia, denying reports of a rift between the two countries, and saying that ties between Cairo and Jeddah run deep.