Egypt Secures .1 Billion From EU, Alongside Billion Deals From IMF and UAE

Egypt is poised to receive an .1 billion (7.4 billion Euros) funding package from the European Union in a bid to assist Egypt’s struggling economy. This funding comes on the heels of Egypt securing over billion in funding agreements from the UAE and the IMF.

The European Union’s move is not only aimed at bolstering Egypt’s economy but also at improving the relationship between the EU and Egypt as the economic bloc seeks to curb migrant flows. The commitment was made during a visit by a European Union delegation led by European Commission President Ursula von der Leyen to Egyptian President Abdel-Fattah El-Sisi in Cairo. The funds are expected to be disbursed through 2027.

The funding package from the EU includes €5 billion in concessional loans and €1.8 billion for projects focusing on renewable energy and food security. Additionally, there are €600 million in grants, with a portion specifically allocated for “migration management.”

During the visit, Ursula von der Leyen emphasized the shared strategic interests in stability and prosperity between the EU and Egypt. The delegation also included prime ministers from Italy, Greece, Austria, and Belgium, as well as the President of Cyprus. Italian Prime Minister Giorgio Meloni highlighted how deals like this are crucial in addressing migratory flows.

Most of the EU funding is newly allocated and was developed in collaboration with the IMF. Of the concessional loans, €1 billion is set to be delivered this year, while the remaining €4 billion is pending approval from the EU parliament.

Earlier this year, Egypt secured a billion investment agreement with the United Arab Emirates to develop a significant area along its Mediterranean coastline. In March, the country also finalized an billion deal with the IMF, along with a .2 billion loan for environmental sustainability, bringing its total funding from the IMF to over billion.

The influx of funding from the UAE and the IMF has been crucial for Egypt, with Bloomberg reporting that the country was on the brink of economic collapse before these agreements. The funding has allowed for the much-anticipated devaluation of the Egyptian currency, providing a much-needed boost to the economy.