UAE to invest $2 billion in Egyptian economy
The United Arab Emirates has accelerated a plan to invest in Egypt to prevent economic shock to the region due to the situation in Ukraine.
Egypt, a major food importer, has been hit hard by record high grain prices triggered by the Russian-Ukrainian conflict. Previously, Egypt bought most of its wheat from Russia and Ukraine, using those supplies as the basis for a subsidized program that provides cheap bread to 70 million people.
At the meeting of the heads of Egypt, the UAE and Israel, the topic of which was the discussion of energy and food security, the UAE decided to invest about $ 2 billion in the purchase of state-owned stakes in companies.
Given that the price of wheat is now more expensive than in 2008, during the global financial crisis, Egypt needs to remain stable. Otherwise, internal unrest can negatively affect not only the state itself, but also its neighbors.
In an attempt to protect its economy from global shocks, Egypt has already imposed severe economic restrictions and turned to the International Monetary Fund for support. The country announced $7 billion in tax breaks and increased social spending.