Egypt to Receive $2bn Aid from Saudi Arabia

Egyptian International Cooperation Minister Sahar Nasr on Thursday said the North African nation is to receive a $2 billion deposit from Saudi Arabia.

While he did not specify when the money was expected to arrive, Sahar said the agreement was signed two months ago.

Saudi Arabia has been – along with Kuwait and UAE – a strong supporter of the government of President Abdel-Fattah El-Sisi, providing Cairo with cash, loans and oil shipments.

Egypt expects its other oil-rich allies to provide funding as the country moves to finalize a $12 billion loan program with the International Monetary Fund.

The country is targeting $21 billion over three years to restore investor confidence and ease a crippling foreign-exchange shortage.

The economy has been struggling since the 2011 uprising that overthrew longtime ruler Hosni Mubarak, with high inflation and foreign currency shortages.

Net international reserves dropped to $15.5 billion in July, the lowest level in 16 months.

In 2015, trade between Egypt and Saudi Arabia totalled $6.3 billion, compared to around five billion dollars the year before.

In April, Egypt and Saudi Arabia signed loan agreements and economic cooperation accords worth over $24 billion.

The accords included $22 billion in finance for Egypt’s five-year petroleum needs and a $1.5 billion concessional loan and $200 million grant from the Saudi Fund for Development (SFD) to upgrade Sinai’s infrastructure and finance transportation, housing and agricultural project.

Geraldine Boechat Posted by on August 19, 2016. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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