• Thursday, February 29, 2024
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BusinessDay

UAE to provide Egypt $9 billion in oil products

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Egypt’s oil ministry said the United Arab Emirates would provide “about $9 billion” worth of petroleum products to Egypt over the next year.

Egypt has struggled to curb its swelling budget deficit and meet its soaring energy demands, which have resulted in daily electricity cuts around the country of 86 million people.

Oil-producing Gulf countries have come to Egypt’s aid since the army, prompted by mass protests, ousted Islamist President Mohamed Mursi last year.

An Egyptian official said that the UAE would provide Egypt with petroleum products worth $8.7 billion over a one-year period starting in September. The petroleum products come as grants and the remainder under a credit agreement that would be repaid in instalments.

The United Arab Emirates, Saudi Arabia and Kuwait have together provided Egypt with more than $20 billion in grants, loans and petroleum products since Mursi’s overthrow.

Fuel subsidies have in recent years cost Egypt’s government around $15 billion a year, a fifth of the state budget. But the government slashed energy subsidies and increased prices by more than 70 percent in July.