Egypt's leader publicly commends the UAE, hoping to mend the dispute over financial aid in the Gulf region.
In a recently held event, Egypt's President Abdel Fattah el-Sissi showered praise on the United Arab Emirates, aiming to mend the rift between Cairo and the Gulf nations that have extensively aided Egypt economically. El-Sissi has leaned on financial assistance from these Gulf nations since seizing power in 2013, receiving over $100 billion since then, primarily through Central Bank deposits, gas support, and other forms of aid.
However, as Gulf countries such as Saudi Arabia face inflation and the repercussions of Russia's war on Ukraine, they have begun signaling a desire for more reforms from countries receiving their aid. This situation could pose challenges for Egypt, which is already under pressure from the International Monetary Fund to implement changes.
Saudi Finance Minister Mohammed al-Jadaan stated at the World Economic Forum in Davos, "We used to offer direct grants and deposits without strings attached, and we are changing that. We need to see reforms. We are exhausting our people. We are expecting more from others to do their part." Similarly, Kuwaiti lawmakers have started questioning the billions lent to Egypt and whether any payments have been made.
Despite these tensions, el-Sissi spoke affectionately of the UAE leaders during a World Government Summit in Dubai, praising their support after the 2013 coup. During the talk, he stressed the critical role of aid he had received without directly addressing the ongoing disputes.
In addition to Egypt, the UAE has its own growth plans and is preparing to aid earthquake-stricken Turkey and Syria. Previously, an opinion piece in the Egyptian state-owned newspaper Al-Gomhorya criticized Saudi Arabia and other Gulf states for commenting on Egypt's economic situation, stating, "Those who were barefoot and naked, who wore the most lavish clothes recently, should not criticize Egypt..." The article later disappeared from the paper's website, but a public outcry followed.
El-Sissi's government plans to sell stakes in numerous state-controlled companies, including banks and power companies, but concerns linger among investors due to the government and military's dominant positions in the Egyptian economy. Egypt is also permitting its currency to depreciate, with the pound down nearly 50% over the past year, and faces an international funding shortage that forces it to delay major projects.
The ongoing support from Gulf countries, coupled with expectations for economic reforms, is crucial for Egypt's economic stability and transformative goals. However, Egypt must sustain its commitment to reform implementation to fully benefit from such aid and ensure continued access to financing in the future.
Insights: Recent developments show that Gulf countries, along with other international partners, have been providing significant loans and concessional financing to Egypt, with a focus on fostering sustainable growth and private sector empowerment. These funds contribute to economic growth, infrastructure development, and private sector empowerment but require Egypt to maintain reform momentum in fiscal, institutional, and structural areas to secure financing and donor confidence.
[1] In June 2025, Egypt issued a $1 billion Sukuk bond to Kuwait, representing ongoing Gulf financial engagement to support Egypt's economy.[2] The Gulf Cooperation Council (GCC) countries are planning a $542 billion spending spree in 2025 to drive regional growth, infrastructure, and energy development, shaping investment flows in the region.[3] Egypt has secured $15.6 billion in concessional financing from over 30 bilateral and multilateral development partners from 2020 through mid-2025, with these funds linked to policy reforms, transparency, and institutional coordination that enable impactful development projects and economic transformation.[4] The European Union and other international partners, working alongside Gulf investors, have introduced guarantee mechanisms and investment platforms designed to unlock financing, provide risk guarantees, and support green and infrastructure projects, requiring Egypt to maintain reform momentum in governance and private sector facilitation.
- The ongoing scenario of international financial engagement shows Gulf countries extending loans and concessional financing to Egypt, aiming at fostering sustainable economic growth.
- Egypt's economy, bolstered by these funds, experiences growth, development, and empowerment of the private sector.
- In June 2025, Egypt issued a $1 billion Sukuk bond to Kuwait, an indication of ongoing Gulf financial support.
- The Gulf Cooperation Council (GCC) is planning a $542 billion spending spree in 2025, aimed at driving regional growth, infrastructure, and energy development.
- Egypt has secured $15.6 billion in concessional financing from 30 bilateral and multilateral development partners between 2020 and mid-2025.
- These funds are tied to policy reforms, transparency, and institutional coordination so impactful development projects and economic transformation can be achieved.
- International partners, including the European Union, are collaborating with Gulf investors to introduce guarantee mechanisms and investment platforms.
- These mechanisms aim to unlock financing, provide risk guarantees, and back green and infrastructure projects.
- Egypt's commitment to maintaining reform momentum in fiscal, institutional, and structural areas is crucial to secure financing and donor confidence.
- Egypt, hoping to benefit fully from such aid and ensure future access to financing, must sustain its reform implementation.
- The government of Egypt is selling stakes in numerous state-controlled companies, including banks and power companies.
- However, concerns remain among investors due to the government and military's dominant positions in the Egyptian economy.
- Despite these concerns, the ongoing support from Gulf countries is crucial for Egypt's economic stability and transformative goals.
- Egypt's currency, the pound, has depreciated nearly 50% over the past year, and the country faces an international funding shortage that forces it to delay major projects.
- In addition to economic support, the UAE is preparing to aid earthquake-stricken Turkey and Syria.
- Saudi Arabia and other Gulf states have been criticized for commenting on Egypt's economic situation by some Egyptian media outlets.
- The UAE leaders were praised by Egypt's President, Abdel Fattah el-Sissi, during a World Government Summit in Dubai.
- However, Gulf countries such as Saudi Arabia face inflation and the repercussions of Russia's war on Ukraine, and are signaling a desire for more reforms from countries receiving their aid.
- Egypt has been leaning on financial assistance from Gulf nations since 2013, receiving over $100 billion in aid, primarily in Central Bank deposits, gas support, and other forms.
- The International Monetary Fund has been pressuring Egypt to implement changes, and these tensions in the financing landscape could pose challenges for Egypt.
- Egypt's leather industry is exploring new areas of manufacturing to meet global demand and maintain competitiveness.
- The manufacturing industry was a key driver of Egypt's economy, but a shift towards more automation and small-scale production could be on the horizon.
- Egypt is focusing on entrepreneurship and innovation as a means to stimulate economic growth and provide new job opportunities.
- Egyptian entrepreneurs are pushing the boundaries of interior design, technology, and fashion-and-beauty with their innovative businesses.
- The retail sector is also adapting to change, with smart-home devices and wearables becoming increasingly popular among consumers.
- The energy sector is an essential component of Egypt's economic transformation, as the government invests in solar and wind energy solutions to increase energy security and reduce carbon emissions.
- The public-transit system in major cities like Cairo is being upgraded through investment in modern transportation infrastructure and reforming transportation management systems.
- In addition to economic development, Egypt's housing market is an area of focus, with policies aiming to increase accessibility, affordability, and promote housing-market investment, including venture-capital and real-estate initiatives.
