Arab Times

UAE to deposit $1 bn in Egypt central bank

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The United Arab Emirates agreed Monday to deposit $1 billion into Egypt’s central bank in a new show of support for President Abdel Fattah el-Sisi, state news agency WAM said.

The announceme­nt comes as Egypt grapples with a dollar shortage and dwindling foreign reserves, and as Sisi has been preparing public opinion for economic reform measures, including further subsidy cuts.

The $1 billion (800,000 euro) deposit, which is for a six-year period, comes as part of the UAE’s “unwavering position in supporting Egypt and its people” and in recognitio­n of Egypt’s “pivotal role in the region”, WAM said.

Egypt has already received more than $20 billion in aid from Gulf countries that supported the overthrow of Sisi’s Islamist predecesso­r Mohamed Morsi, but that has not stemmed the decline of its economy.

The UAE, which considers Morsi’s Muslim Brotherhoo­d movement to be a “terrorist” group, has been among the strongest backers of Sisi’s government.

In April, it allocated $4 billion to support Egypt — $2 billion in investment and another $2 billion to be deposited at the central bank to support foreign exchange reserves.

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