Saudi, UAE pledge US$8bn to Egypt

Saudi, UAE pledge US$8bn to Egypt

Published: July 11, 2013

Funds vital to prevent further economic deterioration. 

The governments of Saudi Arabia and the United Arab Emirates have pledged a total of US$8bn in aid to Egypt.

According to Saudi finance minister Ibrahim Alassaf, speaking to reporters, his country’s US$5bn package will consist of a US$2bn central bank deposit, US$2bn in energy products and US$1bn in cash.

The UAE is offering a US$1bn grant and a US$2bn loan, its state news agency reports. The loan will take the form of an interest-free deposit with the central bank.

Egypt is suffering from plummeting foreign currency reserves, raising inflation and a rapidly widening budget deficit. These funds will provide much-needed, if temporary, relief.