Egypt received EGP 2.664 billion ($300 million) from Saudi Arabia to develop the Sinai peninsula, announced Minister of International Cooperation Sahar Nasr, reported Amwal Al Ghad.

The $300 million loan is the first tranche of a $1.5 billion loan according to Al Mal News.

About one-third of the total loan will be directed to building the King Salman University in Al-Tor city, financing agricultural and irrigation projects, and upgrading North Sinai’s network of roads. The remaining $1 billion will be used to purchase Saudi oil products for Egypt’s development purposes.

Saudi Arabia has sent $500 million so far to Egypt, out of which $300 is for Sinai development, said Nasr. The remaining portion of the funds is earmarked for small and medium-sized industries, added Nasr.