Prince Mohammed accompanied Egyptian President Abdel Fattah al-Sisi to review construction projects near the Suez Canal before boarding a boat with the president to tour the waterway.
A Saudi government source said the two countries had agreed to set up a joint $10 billion fund to develop areas of Egypt linked to the NEOM project.
The $500 billion NEOM mega city, unveiled by Prince Mohammed last year, is planned to be a biotech and digital hub spread over 26,500 square kilometres (10,000 square miles) in an area facing Jordan and Egypt.
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