Qatar To Double Financial Aid To Egypt

Qatar’s government announced on Tuesday that it would be providing an additional $2.5 billion in financial aid to Egypt, taking the gulf state’s contribution to Cairo up to $5 billion – made up of an outright grant of $1 billion and a further $4 billion in bank deposits.

Qatar’s government announced on Tuesday that it would be providing an additional $2.5 billion in financial aid to Egypt, taking the gulf state’s contribution to Cairo up to $5 billion – made up of an outright grant of $1 billion and a further $4 billion in bank deposits.

Speaking at a press conference in Cairo, Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani said that the funds would help control Egypt’s currency crisis, while supporting the nation’s dwindling foreign reserves, which have fallen by more than 50 percent since before the nation’s political uprising began in 2010.

[quote]”Qatar wants a solid regional ally in Egypt,” noted Abdulkhaleq Abdullah, a political analyst in the United Arab Emirates, in an interview with Reuters. “Along with Turkey, this allegiance or axis is fundamental to the regional role Qatar is trying to carve for itself,” he said.[/quote]

In addition to the financial aid, Qatar has already agreed to invest $18 billion in Egypt over the next five years, the New York Times reported. Qatar’s QInvest company has also reportedly moved to purchase a majority stake in Egypt’s biggest investment bank, EFG Hermes.

Nevertheless, Qatar’s Prime Minister denied that his nation was looking to deepen its influence in the Middle East; and had no intention to interfere in other nations’ internal affairs.

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“Talk about Qatari domination has unfortunately been raised by some for internal political reasons in Egypt, but we did not interfere in any country’s affairs,” said Hamad, as cited by the Wall Street Journal.

“We (just) want to see Egypt economically strong and politically stable,” Hamad added.

Analysts say that the Qatari funds now gives breathing space to the Egyptian government, ahead of renewed talks over a $4.8 billion loan with the IMF and an important parliamentary election in the coming months.

[quote]”It’s a big break for the Morsi government. It does give the Egyptian government more time to negotiate the [IMF] deal and build popular support for it,” noted Shadi Hamid of the Brookings Doha Center.[/quote]

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