Saudi Arabia agreed to provide Egypt with more than $3 billion in loans and grants to help its dollar-starved economy.

The kingdom will loan $1.5 billion to develop the Sinai peninsula and $1.2 billion to finance Egypt’s oil purchases, Egyptian Minister of International Cooperation, Sahar Nasr told Bloomberg News from Riyadh. Egypt will also receive a $500 million grant for buying Saudi exports and products. The loans are on favorable terms and will be formally signed on Tuesday, she said without providing further details.

The fresh aid suggests that Saudi Arabia is still committed to supporting Egypt even as the oil-rich kingdom cuts subsidies to shore up its finances, though it is significantly smaller than the tens of billions which Saudi Arabia along with Kuwait and the U.A.E poured into Egypt after the 2013 military-led ouster of Islamist President Mohamed Mursi.

Egypt has offered tourism and housing projects to Saudi funds, an Egyptian government official said last week.

Last month, Saudi Arabia promised to invest 30 billion riyals ($8 billion) in Egypt through its public and sovereign funds. It also said it will help Egypt meet its oil needs for five years on favorable terms.

Egypt’s currency crisis caused business activity to contract the most in more than two years in November. The new aid package should free up dollars needed to import capital goods and raw materials, as well as help authorities avoid an uncontrolled currency devaluation.

Bloomberg

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Anita Eva
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Anita Eva

#Syria #Saudi #Egypt https://t.co/EjGgcdaG3x

W!D///B0Y
Guest
W!D///B0Y

продажные потомки фараонов

Kachef Reza Alkarime
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Kachef Reza Alkarime

Egypt also has been sold out.

Ricardo Vallejos
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Ricardo Vallejos

That is what they do, the Sauds buy people to stay in power, they are protected by some western countries for…money!. Greed and businesses are great is their mantra.

Will Beattie
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Will Beattie

@Pynnha108 The blood-red hand must be the Saudi hand? 🙁

Mohammed Farooque
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Mohammed Farooque

What is the catch. There must be.