Egypt receives first UAE payment after $35 billion land deal

Egypt Reaps Initial Benefits of $35 Billion UAE Pledge

In a significant financial development, Egypt has begun receiving the first tranche of funds from the $35 billion commitment made by the United Arab Emirates (UAE). The substantial financing package not only draws the nation closer to a potential currency devaluation but is also poised to unlock additional international assistance.

President Abdel-Fattah El-Sisi announced that a portion of the UAE funds has already found its way into Egypt’s central bank, with further installments anticipated on Friday. He underscored the “clear” assistance and support from the Gulf state during a televised event on Wednesday.

This marks the initial phase of Egypt’s receipt of the pledged $35 billion earmarked by the UAE for the ambitious development project along the country’s Mediterranean coast, known as Ras El-Hekma.

Reports from local media, quoting President Abdel Fattah El Sisi, confirm that a segment of the financing has been transmitted through the Central Bank of Egypt, and another payment is scheduled for Friday.

Last Friday witnessed a momentous milestone as Egypt and the UAE signed a landmark investment deal. This agreement outlines the joint venture to establish a state-of-the-art city in Ras Al-Hekma, situated west of Alexandria on the North Coast. As per the terms, Egypt is set to receive $15 billion within seven days, with the remaining $20 billion slated for transfer within two months.

“The figures announced have been received yesterday, part of which was transferred to the Central Bank of Egypt today and the same amount is set to be delivered on Friday,” reported the Egyptian president, as stated by news site AhramOnline.

Analysts are optimistic about the potential positive impact of this monumental deal on the Egyptian pound. Oxford Economics anticipates a rise in the local currency to 45 against the US dollar by the end of the year.

“The figures announced have been received yesterday, part of which was transferred to the Central Bank of Egypt today and the same amount is set to be delivered on Friday,” emphasized President Abdel-Fattah El-Sisi, reflecting the cooperative efforts between Egypt and the UAE.