Kuwait boasting that it's ready to boost Egypt's economy
Kuwaiti Deputy Prime Minister Sabah Al-Khaled Al-Sabah announced that the country would take a number of measures to help boost the Egyptian economy, according to an official statement from the Ministry of Housing, Utilities and Urban Development.
Al-Sabah asserted that the Kuwait Investment Authority would form partnerships with Egyptian organisations to aid in implementing projects and invest in joint ventures with the country, which the Kuwait Fund for Arab Economic Development would finance.
Al-Sabah was quoted in the statement as saying that in the coming period, Kuwait would give priority to the projects that affect Egyptian citizens.
These statements came through a meeting between Egyptian Minister of Housing Ibrahim Mehleb, Al-Sabah, Kuwaiti Ministers of Public Work and Housing, Chairman of the Arab Contractors Company and Egyptian Ambassador to Kuwait Abdel Karim Soliman, which was held this week to discuss cooperation between the two countries.
According to the statement, Mehleb said that the Kuwaiti officials welcomed the Egyptian delegation and confirmed their willingness to cooperate with Egypt in various fields.
Kuwaiti officials expressed their contentment regarding the involvement of Egyptian company Arab Contractors Co. in a number of projects in Kuwait, adding that the Gulf country will facilitate the employment of Egyptian workers in various projects there.
“The Ministry of Housing is preparing to construct three new housing cities, and hopes that Arab Contractors would participate in implementing these cities,” Kuwaiti Minister of Housing Salem Al-Azina was quoted in the statement as saying.
Kuwait, along with other Gulf countries, pledged loans to Egypt in the form of interest-free deposits, cash grants and petroleum products after the ouster of former President Mohamed Morsi on 3 July.
Kuwait leased $4bn; the Gulf’s financial aid packages also included $5bn from Saudi Arabia and $3bn from the United Arab Emirates, totalling $12bn in aid from the Gulf region.
The Central Bank of Egypt received the $2bn deposit from Kuwait on 26 September.
In October, El-Beblawi announced that Kuwait has extended Egypt’s time frame for the debt repayment to five years rather than an initial one year, adding that this was per Egypt’s request.
On 26 October, the United Arab Emirates pledged a $4.9bn aid package to Egypt. El-Beblawi said in a press conference in Abu Dhabi, which concluded his three-day visit to the Gulf country, that this package will most likely be followed by similar gestures from Saudi Arabia and Kuwait.
Foreign reserves have increased after the influx of Gulf aid to reach $18.9bn in August. The government announced earlier in August that Gulf aid will help reduce the 14% budget deficit.
- Livelihoods trump lawlessness: young working Egyptians risk everything in Libya
- RIP: King Abdullah leaves behind profound legacy for the Saudi Economy
- Impetus from within: why the Arab World needs a very Arab 'Marshall Plan'
- 'Fiscal juggling': just how many economic priorities will Saudi Arabia's new King have to focus on?
- Despite Erdogan's 'harsh rhetoric', Turkish-Israeli is still booming