UAE, Egypt launch giant $20bn joint investment platform

Abu Dhabi, UAE - The UAE and Egypt launched a giant US$20bn joint investment programme on Thursday to develop ‘economic and social projects’, as Cairo seeks assistance to boost its sagging economy.

Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al Nahyan made the announcement while receiving Egyptian President Abdel Fattah al Sisi on a visit to the Emirati capital.

‘We launched a joint strategic investment platform between the UAE and Egypt worth US$20bn to implement vital economic and social projects for our brotherly countries,’ Sheikh Mohammed said in a tweet.

He added that he discussed with Sisi ways to strengthen relations and enhance coordination.

The UAE has been a firm regional backer of former army chief Sisi since the Egyptian military overthrew Islamist president Mohamed Morsi in 2013.

“Egypt’s security is as important as the UAE’s security, and its progress, development and stability are important to the UAE and all Arab countries,” said Sheikh Mohammed, according to a statement carried by the UAE state news agency WAM.

“Confronting the challenges and risks facing the Arab region requires intensifying the ongoing consultations between our countries and joint Arab action,” he added.

Cairo has been seeking investment to boost its sagging economy and create jobs.

Poor and middle-class Egyptians have borne the brunt of harsh austerity measures since 2016 when the government secured a US$12bn bailout from the International Monetary Fund (IMF) in exchange for tough economic reforms.

Nearly one in three Egyptians live below the poverty line, according to official figures released in July.

In April, the IMF forecast the Egyptian economy would pick up speed this year, expanding by 5.5 per cent, while inflation should slow to 14.5 per cent.