Saudi Arabia's monarch addressed the Egyptian parliament Sunday where he announced plans to build a bridge linking the two nations across the Red Sea.
In his six-minute address, King Salman also said that Arab countries need to work together to combat violent extremism and advocated a "unified vision" for a "united Arab (military) force".
"The mission on which we have to work together is the fight extremism and terrorism, with the Arab world being the primary area to be affected negatively by it," the Saudi kind said.
"Saudi Arabia has realized the importance of a unified vision and stance in order to reach practical solutions against this phenomenon, and we put together the Islamic Military Alliance in order to fight terrorism, ideologically, through the media, financially and militarily."
During his visit, the Saudi and Egyptian leaders signed a series of multi-million dollar deals including one that officially gives Saudi Arabia control of two uninhabited islands in the Straights of Tiran.
Saudi Arabia has always been a key backer of Egypt, but the support for the nation has increased since the military's 2013 ouster of former president Mohammed Morsi.
On Saturday, King Salman and Egyptian President Abdel-Fattah el-Sissi agreed to set up a $16 billion investment fund aimed at helping Egypt recover from its economic downturn.
A statement from the Egyptian presidency says the two leaders also agreed on plans for a six-kilometer industrial zone near the Suez Canal, new power plant, agriculture complexes in Sinai, and an aqueduct project.