Egypt receives 14 bln USD from UAE as 2nd payment of investment deal: cabinet-Xinhua

Egypt receives 14 bln USD from UAE as 2nd payment of investment deal: cabinet

Source: Xinhua

Editor: huaxia

2024-05-16 00:17:00

CAIRO, May 15 (Xinhua) -- Egypt has received 14 billion U.S. dollars from the United Arab Emirates (UAE) as the second payment of a 35-billion-dollar investment deal signed in February to develop Ras Al-Hekma, a new resort city on Egypt's northern coast, the Egyptian cabinet said Wednesday.

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.

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

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

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.

The crisis deepened after the outbreak of the Palestinian-Israeli conflict in October last year, which affected Egypt's tourism industry and halved its revenues from the Suez Canal.

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 6 billion dollars "to support Egypt's development and reform efforts," while the European Union announced it would provide a financial package of 7.4 billion euros (8.04 billion U.S. dollars) to bolster the Egyptian economy.

Also in March, the International Monetary Fund approved an additional 5-billion-dollar funding for Egypt besides the 3-billion-dollar, 46-month funding approved in late 2022 to support the country's reforms.