India's most valuable company in terms of market capitalization, the Reliance Industries Ltd. has agreed to invest $10 billion in Egypt's oil refining, petrochemicals and plastic industries, according to Egyptian Government officials.

The decision was reportedly taken by Reliance following the meeting of its executives with Egyptian officials in the northern port city of Alexandria.

Egyptian Prime Minister Ahmed Nazif made the announcement, August 9, saying that he hopes the deal will include the construction of an oil refinery.

Magdy Rady, the Prime Minister's spokesman, told the official MENA news agency that the investments will include $1 billion to build the refinery and at least $7 billion invested in petrochemicals.

Reliance officials have refused to comment on the deal.

According to industry watchers, Indian investments in Egypt total approximately $320 million.

Reliance Petroleum Ltd, (RPL) a subsidiary of the Reliance group, has been importing Egyptian crude oil since 2001.