Egypt gets another US$14bn from UAE in investment deal – The Herald

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Egypt gets another US$14bn from UAE in investment deal


CAIRO – Egypt has received US$14 billion from the United Arab Emirates (UAE) as the second payment of a US$35-billion investment deal signed in February to develop Ras Al-Hekma, a new resort city on Egypt’s northern coast, the Egyptian cabinet said yesterday.

During a cabinet meeting, Egyptian Prime Minister Mostafa Madbouly confirmed the receipt of the payment, which he said would “contribute to pumping more dollar resources,” according to a statement released by the cabinet.

This injection of funds further bolsters Egypt’s dollar resources and contributes to the ongoing economic reforms. It is billed as the nation’s biggest-ever inward investment

In early March, Egypt announced the receipt of US$15 billion from the UAE as the first tranche of the US$35-billiondeal. The sum included US$5 billion received in late February, another US$5 billion received in early March, and a third US$5 billion from the UAE’s US$11 billion deposit at the Central Bank of Egypt (CBE).

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Madbouly said yesterday that the Egyptian government had also started working with the UAE to waive the remaining 6-billion-dollar Emirati deposit at the CBE.

Madbouly expressed confidence in the trajectory of Egypt’s economic indicators, emphasizing the importance of maintaining fiscal discipline, prioritizing private sector growth, and focusing on key sectors like industry, agriculture, communications, and tourism as part of the broader economic reform agenda.

The prime minister also highlighted a growing trend of Egyptians abroad repatriating funds, contributing to a steady increase in remittances. He noted a significant rise in dollar relinquishment through the banking system and exchange bureaus, coinciding with a decline in the parallel market.

The deal was signed at a time when Egypt faced a shortage of foreign currency needed for imports, which led to the devaluation of the local currency, the rise of a parallel market, and high inflation rates in the most populous Arab country.

After it signed the Ras Al-Hekma deal, Egypt has seen a large influx of foreign cash.

In late March, the World Bank announced its intention to provide more than US$6 billion “to support Egypt’s development and reform efforts,” while the European Union announced it would provide a financial package of e7.4 billion (US$8.04 billion) to bolster the Egyptian economy.– Xinhua.

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