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article imageGulf states advise ally Egypt to invest aid in infrastructure

By Paul Iddon     Jun 5, 2014 in Business
The United Arab Emirates is giving Egypt billions worth of aid which it says it should use to invest in its infrastructure in order to bring the economy out of the dire straits it has been in for years now.
As reported here Saudi Arabia and the United Arab Emirates are giving Egypt billions in aid since el-Sisi was elected president. They are hostile to the Muslim Brotherhood and rejoiced when el-Sisi ousted the Muslim Brotherhood President Mohammed Morsi from power. Now that his government has banned the Brotherhood and declared it to be a terrorist organization these states are eager to help el-Sisi succeed.
Deutsche Welle gives us a good in-depth analysis of how bad the economic situation is in Egypt is at the moment. The budget deficit stands at some 12.5% of the country's domestic product and the national debt is nearing 82%. Inflation is around 11%.
The UAE has established an office in Cairo to oversee the many projects which the Gulf states aid money will go into. Such as health clinics, schools and housing.
Business Week quotes the UAE minister, Sultan Al Jaber, overseeing this and other assistance being given to Egypt who explained that, "Key to this economic recovery is an effective fiscal consolidation program that will restore the confidence of domestic and foreign investors by putting public finances back on a sustainable path."
Saudi Arabia has arranged a donor conference to raise more money to invest in Egypt. At that conference he claimed that, "Prejudices against Egypt constitute prejudices against Islam and against Arab-ness. They also constitute prejudice against Saudi Arabia."
Aside from financial aid to Egypt these Gulf states are also investing in the country partially due to the fact that they see a strong government and economy in Egypt as an effective buffer and security investment against the Muslim Brotherhood regaining traction in the future.
Whilst the west has invested $46 billion into Egypt at present Gulf states are investing about $50 billion.
More about Egypt, Saudi arabia, UAE, Abdel Fattah elSisi, Muslim brotherhood
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