The prospective deal comes as Egypt continues to seek financial lifelines to bolster its economy, which has been strained by inflation, a plunging pound, and a persistent shortage of hard currency
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Egypt and Qatar have announced plans to “work toward” a $7.5 billion investment package for Cairo, in a further sign of Gulf backing for Egypt’s efforts to stabilise its economy amid ongoing foreign currency pressures.
The pledge was made in a joint statement on Monday (April 14), coinciding with the end of Egyptian President Abdel-Fattah El-Sisi’s visit to Doha, where he held talks with Qatari leaders on regional and economic issues,
Bloomberg news reported.
The deal is a striking turnaround given that just a few years ago, Cairo embargoed Doha and accused it of sponsoring terrorism.
The two countries did not provide specifics on the timing or sectors targeted by the planned investment.
The prospective deal comes as Egypt continues to seek financial lifelines to bolster its economy, which has been strained by inflation, a plunging pound, and a persistent shortage of hard currency. The crisis eased significantly last year when the United Arab Emirates announced $35 billion in funding and investments, forming part of a wider $57 billion rescue package that also involved the International Monetary Fund and the European Union.
Qatar’s latest signal of support adds much-needed momentum to Gulf-led investment diplomacy in Egypt, which has seen increasing engagement from sovereign wealth funds and private firms alike. This comes despite the fact that in recent times, Gulf countries have reportedly grown wary of offering unconditional aid to Egypt, increasingly opting for investments tied to economic reforms.
Egyptian officials have also been pushing for expanded property and infrastructure deals with Qatari investors, with a new round of negotiations expected this year itself.
Following his stop in Doha, El-Sisi is now travelling to Kuwait, according to Egypt’s state-run Middle East News Agency. The regional tour shows Cairo’s continued reliance on Gulf alliances as it attempts to reboot its economy and secure longer-term financial stability.
With inputs from agencies
