The UAE’s finance minister said on Thursday that his country does not intend to provide Egypt with additional financial aid at this time.
Sheikh Hamdan bin Rashid Al-Maktoum, who is also the deputy ruler of Dubai, told the reporters on board his royal yacht that, “We are talking about support (for Egypt).” Responding to a question about whether there are plans to provide further financial aid, Reuters quoted Al-Maktoum as saying that there are “no plans for now”.
The United Arab Emirates, Saudi Arabia and Kuwait have together provided more than $12 billion in the form of loans and grants to support the Egyptian economy since the military ousted President Mohamed Morsi in a coup in July of last year.
Earlier this month, the head of the Egyptian General Petroleum Corporation said that Gulf oil producers have so far provided Egypt with free fuel aid estimated at a total value of $6 billion, in an attempt to prevent the disturbances expected to happen during the summer when consumption normally reaches its peak.
The aid could help ease the burden of high costs borne by the government to subsidise fuel prices, as well as reduce the country’s reliance upon foreign currency reserves.
Fuel subsidies cost the Egyptian government $15 billion annually, the equivalent of one-fifth of the general budget. Subsidised fuel at stations costs much lower than the market price, which does not encourage Egyptians to ration their fuel consumption.