But the move came after Egypt voted in favour of a Russian-drafted UN Security Council resolution on Syria that Saudi Arabia strongly opposed.
The controversy over the islands became a source of tension with Saudi Arabia, which has provided billions of dollars of aid to Egypt in the immediate aftermath of the 2013 military coup against former Muslim Brotherhood leader Mohammad Morsi.
Prince Khalid bin Salman has been named as Saudi Arabia's new ambassador to the USA replacing Prince Abdullah bin Faisal bin Turki, according to Saudi Press Agency (SPA).
Al-Sisi's visit is the first after the tension that had taken over the bilateral relations between the two countries in October 2016.
Saudi Arabian stocks advanced the most this month on optimism consumer spending will increase after King Salman restored bonuses and allowances for state employees.
Prince Khaled is an F-15 pilot who has trained in the United States and carried out air strikes against the Islamic State militant group in Syria.
Saudi Arabia is looking forward to have a strong and friendly relations with the US following the recent visit of Saudi Deputy Crown Prince bin Salman with President Trump at the White House.
He holds the post of defence minister and is pushing a wide-ranging social and economic reform programme.
King Salman received him at the King Salman Airbase.
Salman on Saturday ended the restrictions on compensation for state workers because he is "keen to provide comfort to the Saudi citizens", a decree said, as the kingdom prepares to increase electricity and other prices.
Saudi Arabia has sacked Information Minister Adel Al-Toraifi and has also replaced its ambassador to the US.
The king also appointed Fahad Bin Turki to replace Lieutenant General Eid al-Shalwi as head of the Saudi army.
Salman fired Minister of Civil Service Khaled Al Araj, who will be investigated by a committee of the royal court.