Examines the complex Saudi-Egyptian relationship in the past decade and focuses on the political and military dimensions of Saudi aid flows to Egypt. Preceded by an appraisal of Egyptian capital needs as contrasted with Saudi capital assets, a conceptual overview of the several institutional and noninstitutional channels through which Saudi aid flows to Egypt is presented. The goals, achievements, and disappointments of military-industrial cooperation between Saudi Arabia and Egypt--within the framework of the Arab multilateral consortium AMIO (Arab Military Industries Organization)--are summarized. Long and short term objectives of the Saudi-Egyptian relationship are discussed, with reference to regional security and stability and the growing U.S. aid relationship with Egypt.
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