CAIRO: The United Arab Emirates will provide Egypt with petroleum products worth $8.7bn over a year starting in September, an Egyptian official said yesterday.
Egypt has struggled to curb its swelling budget deficit and meet its soaring energy demands, which have resulted in daily electricity cuts around the country of 86 million people.
Oil-producing Gulf countries have come to Egypt’s aid since the army, prompted by mass protests, ousted Islamist President Mohamed Mursi last year.
“We will complete all the details this week and the first shipment will be sent next week,” the official said, referring to the UAE agreement.
He said some of the petroleum products would comes as grants and the remainder under a credit agreement that would be repaid in instalments.
The United Arab Emirates, Saudi Arabia and Kuwait have together provided Egypt with more tan $20bn in grants, loans and petroleum products since Mursi’s overthrow.
Fuel subsidies have in recent years cost Egypt’s government around $15bn a year, a fifth of the state budget.
But the government slashed energy subsidies and increased prices by more than 70 percent in July.
“Egypt imports petroleum products worth around $1bn to $1.3bn a month,” the official said.
Reuters
