The pledged aid, which was announced promptly following the ouster of former Islamist president Muhammad Mursi, underlines the gravity of Egypt’s economic problems. It also shows that some Gulf states, previously reluctant to assist Islamist Egypt, were now willing to come to its rescue. The UAE in particular has had domestic problems with its fundamentalists. Qatar, the key foreign financial backer of the Mursi regime, has been notable by its absence (see table).
Following a visit by the Governor of the Central Bank of Egypt (CBE) Hisham Ramiz to Abu Dhabi on 7 July, the UAE announced that it was providing a total of $3bn – $1bn in a grant and $2bn as an interest-free deposit with the CBE. (In the aftermath of the 2011 Revolution the UAE pledged $3bn, but this failed to materialize once it became clear the Muslim Brotherhood would have a prominent role in government). Saudi Arabia next announced an aid package of $5bn, consisting of a $1bn in a grant, $2bn in a grant for petroleum products, and $2bn as an interest free deposit with the CBE. Kuwait followed suit on 10 July by announcing a package of $4bn, made up of $1bn in a grant, $1bn in a grant for petroleum products and $2bn to be placed with the CBE. (CONTINUED - 637 WORDS)