The potential agreement arises as Egypt actively pursues financial support to strengthen its economy, which is currently under pressure from inflation, a declining pound, and an ongoing scarcity of hard currency.
Egypt and Qatar have unveiled intentions to collaborate on a $7.5 billion investment initiative aimed at supporting Cairo, further indicating Gulf nations’ endorsement of Egypt’s efforts to stabilize its economy amidst ongoing foreign currency challenges.
This commitment was articulated in a joint statement released on Monday (April 14), coinciding with the conclusion of Egyptian President Abdel-Fattah El-Sisi’s visit to Doha, where he engaged in discussions with Qatari leaders regarding regional and economic matters, as reported by Bloomberg.
This agreement marks a significant shift, considering that only a few years prior, Cairo had imposed an embargo on Doha, accusing it of terrorism sponsorship.
The two nations did not disclose details regarding the timeline or specific sectors that would be the focus of the proposed investment.
This potential agreement emerges as Egypt actively seeks financial support to strengthen its economy, which has been adversely affected by inflation, a declining currency, and a persistent shortage of foreign currency. The situation improved considerably last year when the United Arab Emirates pledged $35 billion in funding and investments, part of a broader $57 billion rescue initiative that also included the International Monetary Fund and the European Union.
Qatar’s recent expression of support injects essential momentum into Gulf-led investment diplomacy in Egypt, which has witnessed heightened involvement from sovereign wealth funds and private enterprises. This development occurs despite Gulf nations reportedly becoming more cautious about providing unconditional assistance to Egypt, increasingly favoring investments linked to economic reforms.
Egyptian officials are also advocating for expanded property and infrastructure partnerships with Qatari investors, with new negotiations anticipated within the year.
After his visit to Doha, El-Sisi is set to travel to Kuwait, as reported by Egypt’s state-run Middle East News Agency. This regional tour underscores Cairo’s ongoing dependence on Gulf partnerships as it strives to revitalize its economy and achieve long-term financial stability.
