Qatar will pour some $18 billion into Egypt over the next five years to help stimulate its struggling economy, Prime Minister Sheikh Hamad bin Jassim Al Thani has said.
The money will go primarily into electricity, natural gas and tourism, he said today during a joint news conference with Egyptian prime minister Hesham Qandil.
Qatar has already transferred some $500 million to Egypt, a quarter of the $2 billion in aid it has promised to provide over the next few months.
Tourism, once Egypt’s most profitable industries, fell 30 percent to $9 billion last year, AP reports.
According to AFP:
The Egyptian central bank’s reserves have fallen sharply since Mubarak was forced out in February 2011. Reserves are down to $14.4 billion from $36 billion a year and a half ago…
Egypt has has faced serious and growing economic challenges since the ouster of president Hosni Mubarak last year, with key foreign currency earner tourism falling as well as incoming investment.
The money is sure to breathe much-needed fresh air into the economy, but one can’t help but wonder – what strings are being attached?
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