Between the end of July 2013 and the end of November, Egypt had received $2.48 billion worth of fuel from Saudi Arabia, the UAE, and Kuwait as a form of aid during troubled times.
Ever since the 2011 uprising that toppled the reign of long standing President Hosni Mubarak, Egypt has struggled to pay for its energy imports. The months of protesting and violent clashes that preceded the resignation of Mubarak, drove away tourists and foreign investors, two of the largest sources of economic revenue for the country.
In the years that have followed Egypt has spent over $20 billion of its reserves trying to keep the country running and has often sought to delay its energy payments as it attempts to manage its wealth. It has even tried to reduce generous energy subsidies which account for 20 percent of all state expenditure.
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The country’s problems were compounded in July of this year after Mubarak’s replacement, Mohamed Morsi, was overthrown by the country’s army. At this point the three Gulf Arab states stepped in to offer the ailing country more than $12 billion in loans and donations as means of aid until it can get back on its feet.
Sherif Ismail, Egypt’s Oil Minister, said that the three Arab countries had also agreed to supply oil products until the end of the year, and that Egypt is now looking to earn an extension of that offer.
Hisham Ramez, the governor of Egypt’s central bank, said that by the end of September the country had received a total of $7 billion in aid: $3 billion from the UAE, $2 billion from Saudi Arabia, and $2 billion from Kuwait.
An Egyptian government official told Reuters that “the total of the petrol aid that Egypt received until the end of November is $1 billion from Saudi Arabia, $820 million from the UAE and $660 million from Kuwait.”
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com