Qatar plans $10 billion in Egypt projects to boost economy

Qatar is planning projects worth at least $10 billion to help Egypt’s economy after the civil unrest that shook the country’s economy, al-Ahram newspaper reported on Tuesday.

The Egyptian state-owned newspaper quoted Qatar’s ambassador to Cairo as saying a Qatari delegation would hold talks in Cairo on Saturday, Reuters reported.

The talks are understood to be a follow-up on projects proposed during a visit by Qatar’s Emir Sheikh Hamad bin Khalifa Al Thani, earlier this month.

Economic analysts say that Egypt needs to bridge an estimated $10-12 billion balance of payments gap for the fiscal year beginning July 1.

“I believe these projects, when implemented, will surpass $10 billion, and they will be productive products in Egypt,” Ambassador Saleh al-Buainein of Qatar said according to al-Ahram report.

He said that implementation of the projects would begin immediately.

“The Egyptian and Qatari finance ministers are working to agree on the suggested amount,” al-Ahram quoted Mr. Buainein as saying.

Mr. Buainein said that Qatar was also mulling purchases of Egyptian treasury bonds, an idea that had been brought up by Egypt’s Finance Minister Samir Radwan during a recent visit to Qatar.

The civil unrest from the Egyptian uprising has caused tourism and investment revenues to suffer, at a time of increased pressure on the national budget.

Egypt, with an estimated population of 82 million, has an annual GDP of $500 billion and a GDP per capita of $6,200. In 2010, its public debt stood at 80.5 percent of its GDP.

Saudi Arabia, the United States and other international donors have already pledged assistance to Egypt.

Egypt is receiving $4 billion in financial aid from Saudi Arabia, and has had $1 billion written off in debt owed to the United States.

US President Barack Obama said he would guarantee another $1 billion in borrowing to finance infrastructure and job creation, Reuters reported.

Last month, the Kuwait Investment Authority said it launched a company with capital of $168 million to invest in Egypt’s economy.

(Eman El-Shenawi, a writer for Al Arabiya, can be reached at: [email protected])