Ensuring economic stability is one of the most important steps for reaching a sustainable social and political settlement in Egypt. Without the prospect of a better life for all, Egyptians will continue to struggle to come together and agree on the best way forward for their country.
This is the importance of the financial and other aid which the UAE has offered to Egypt. It will give the country the room it needs to strengthen its economy and finances.
The UAE has agreed to grant Egypt $1 billion (Dh3.67 billion) and give it a $2 billon interest-free loan as well as a delivery of diesel. Saudi Arabia has also approved a $5 billion aid package to Egypt, according to reports. The UAE offer was made during a meeting in Cairo between Shaikh Hazza Bin Zayed Al Nahyan, UAE National Security Adviser, and Egypt’s Interim President, Adly Mansour. “The UAE stands by Egypt and its people in this crucial phase. It has confidence in the choices made by its people, as well as the people’s ability to overcome the current challenges,” Shaikh Hazza said. The offer is evidence that the support of the UAE to Egypt goes substantially beyond rhetoric and is a practical expression of the solidarity between Arab countries.
However, Egypt and the international community must move fast to ensure the county is put back on a sound financial footing and as much as it is engaged in negotiating a political settlement, the interim government must tackle the country’s economic travails. Negotiations with the International Monetary Fund (IMF) must continue to ensure that the country has sustainable financial support and is able to offer those Egyptians in need necessary social support, especially in the tense coming months. The deadlock between the IMF and the previous government contributed to the financial and political volatility in Egypt. However, social security programmes must remain affordable to the Egyptian treasury.
