UAE development arm deposits $1 billion to spur Egypt economy
The Abu Dhabi Fund for Development (ADFD), the UAE’s international development arm, has deposited $1billion at Egypt’s Central Bank to finance development projects in the next six years. Egypt looks to industrialisation to foster economic growth.
According to a statement from the Fund, the deposit “is to support the economic challenge in Egypt and is crucial in enabling future economic growth in the country in the coming years.”
The deposit comes just two days after the UAE offered to help Egypt meet the requirements for the $12 billion loan that the North African country made earlier with the International Monetary Fund (IMF).
According to Mohammed Saif al-Suwaidi, the Director-General of the ADFD, the deposit will be used in development projects in the primary sectors.
He added that the deposit “demonstrates the UAE’s commitment to support our long-term partners, ensuring their economic growth and stability, and is a landmark agreement which will make an immediate difference to the Egyptian economic system.”
Tarek Amer, the Governor of the Central Bank of Egypt praised the role that UAE and its president play in helping the government to overcome the economic crisis and fund projects. He added that the deposit came “at the right time.”
He added: “The UAE is one of the top countries with direct investments in Egypt, and several UAE-based companies are active in various economic sectors of Egypt. The country is among the top nations that provide unconditional support to the Egyptian economy.”
He added that ADFD’s deposit in the Central Bank of Egypt will also have short term benefits, by supporting Egypt’s foreign reserves and contributing to the stability of the Egyptian Pound in next few months.
Amer stressed the important role the fund plays in funding projects of the primary sectors like housing and agriculture.
Since 1974, ADFD funded around 17 development projects in Egypt of a total amount of $17 billion which was reflected directly and effectively on economic and social development.
Abu Dhabi Fund for Development (ADFD) is an independent national entity affiliated with the Abu Dhabi Government established in 1971.
ADFD aims to support developing countries in achieving sustainable socio-economic development. In addition, ADFD seeks to help developing countries achieve sustainable economic growth and reduce poverty by providing financial resources, forging partnerships in the public and private sectors, and adopting international best practices to ensure aid effectiveness.
