Egypt Received $10.7 billion in Gulf Aid During H1

Egypt has received US$10.7 billion (74.46 billion pounds) in aid pledged by Gulf countries during the first half of the current fiscal year, the country’s Ministry of Finance announced on Sunday.

Gulf financial assistance and grants have spurred the Egyptian government to launch its second economic stimulus package which amounts to EGP33.9 billion, the country’s finance ministry added in its report issued on Sunday.

Gulf Arab oil producers showered Egypt with aid pledges after the overthrow of President Mohamed Morsi in July. Egypt has struggled to pay for imports since the 2011 uprising that ousted Hosni Mubarak drove away tourists and foreign investors, two of its main sources of foreign currency.

According to the report, Saudi Arabia has provided Egypt during the first half of the current fiscal year with US$3.6 billion, consisting of a US$2 billion deposit in the CBE, and a US$1.6 billion worth of oil products.

In addition, the report mentioned that UAE has sent Egypt aid packages worth US$4.2 billion, consisting of a US$2 billion deposit in the CBE, a US$1 billion non-refundable grant, and US$1.2 billion worth of oil products.

Meanwhile, Kuwait has submitted a US$2 billion deposit in the CBE and US$700 million worth of oil products, whereas the report said Qatar sent the North African country US$200 million worth of oil products by the beginning of the current fiscal year.

Gulf aid packages have helped the Egyptian government control a mushrooming budget deficit, which hit EGP 89.4 billion during the H1 of the current fiscal year, down from EGP 91.4 billion during H1 of FY2012/2013.

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