Saudi Arabia has agreed to provide Egypt with 700,000 tonnes of oil products a month in a $23bn deal over five years, an official from Egyptian General Petroleum Corp (EGPC) was quoted as saying.

“The Saudi Fund for Development will pay Saudi Aramco for the petroleum products directly, and receive in return the amount from Egypt in instalments,” the official told Reuters.

The deal was part of the talks when Saudi Arabia’s King Salman bin Abdul Aziz al-Saud visited Egypt earlier this month, agreeing to provide widespread support to the Cairo government.

Egypt will get financing for the oil and gas products but will have to repay the money, the report said. The supply deal between Saudi Aramco and EGPC includes 400,000 tonnes of gas oil and 200,000 tonnes of benzene.

Egypt also agreed to hand over the sovereignty of the Tiran and Sanafir islands in the Red Sea to the kingdom.

Earlier during King Salman’s visit, Egyptian state television said the two nations had agreed to set up a $16bn investment fund, while on Friday the leaders unveiled plans for a Red Sea bridge connecting the two countries.