The United Arab Emirates has pledged $4 billion to Egypt, half as a deposit in the central bank and the other half in investments in developmental projects, the Emirati news agency WAM reported on Friday.
Egypt’s foreign currency reserves stood at $16.5 billion in March, less than half of the $36 billion it registered before the 2011 revolution, which was followed by political and security unrest that spooked investors and tourists, the main sources of foreign currency.
The UAE deposit at the central bank aims to support Egypt’s foreign currency reserves, according to WAM.
Egypt reportedly recieved $6 billion in central bank deposits from the three Gulf countries in April 2015, which were pledged during the Economic Development Conference in Sharm El-Sheikh, the then-central bank governor Hisham Ramez told Reuters.
However, it is unclear whether the above mentioned allocation, announced by the UAE on Friday, refers to the same pledge made in Sharm El-Sheikh in March 2015. Central bank officials were not immediately available for comment.
Along with Saud Arabia and Kuwait, the UAE has emerged as one of Egypt’s main backers following the 2013 ouster of Islamist president Mohamed Morsi, providing Cairo with more than $30 billion in aid.
Egypt might also recieve a $3 billion dollar deposit from Saudi Arabia soon, according to local media reports that are yet to be confirmed by the central bank.
Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan arrived in Cairo on Thursday for a short visit to meet Egyptian President Abdel-Fattah al-Sisi.
The two officials went on a tour on Friday of a number of projects related to the new administrative capital due to be built east of Cairo. The new capital, which is part of al-Sisi’s plan to boost the economy through a series of mega-projects, is estimated to cost $45 billion.
The visit included talks on strengthening bilateral relations and international issues of mutual interest.
Egypt and the UAE have been conducting a joint military drill in the Gulf country’s waters aimed at boosting military cooperation between the two Arab states, with the latest exercise starting last week.