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article imageSaudi Arabia and UAE ready to give Egypt's Sisi $20 billion aid

By Paul Iddon     Jun 2, 2014 in Politics
The Kingdom of Saudi Arabia and the United Arab Emirates are prepared to give Cairo $20 billion in aid after their ally in Cairo, Abdel Fattah el-Sisi, is inaugurated as the new president of Egypt.
Middle East Monitor informs us that both Saudi Arabia and the UAE had frozen negotiations pertaining to economic support until they were sure el-Sisi would have complete hold of the reigns of government.
Saudi Arabia's support of Egypt is predicated on el-Sisi becoming power and nobody else.
El-Sisi in his former capacity as army chief led the ousting of the Muslim Brotherhood's President Mohammed Morsi in July last year after popular discontent with his presidency. The Muslim Brotherhood was subsequently banned in Egypt and is now designated a terrorist organization. Saudi Arabia and the UAE detest the Brotherhood and are fearful of its influence. They are therefore very happy el-Sisi is in power in Egypt and are more than willing to support him and his efforts.
Egypt's future aid package will include deposits to Egypt's central bank, a move that will support the Egyptian pound whose value compared to the United States Dollar has declined in recent months.
The Telegraph reminds us that the Egyptian economy has failed to recover and has been declining since the Egyptian Revolution in early 2011. Throughout the course of that and the so-called Arab Spring of that year Egypt's stock market had been closed for months.
The aid will also consist of many low-interest loans and investments in important key industries in Egypt. Such as water sanitation projects schools, grain silos, petroleum.
As well as this these countries will do their utmost to get others to invest in Egypt to help its economy recuperate and grow.
Since the ousting of Morsi on July 3 last these gulf countries have provided Egypt with aid valued at $15.9 billion.
More about Abdel Fattah elSisi, Saudi arabia, UAE, Egypt, Muslim brotherhood
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