Egypt hopes the Economic Summit will result in Gulf countries becoming the largest investors in the country. Given the strong relations Egypt has with its Arab friends, investment deals are likely to be struck.
The Emir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, UAE President Sheikh Khalifa bin Zayed, and the King of Bahrain Sheikh Khalifa bin Hamad Al-Khalifa are all attending the summit in Sharm El-Sheikh, along with the rest of the Gulf delegations.
President Abdel Fattah Al-Sisi negated audio leaks in early February that purportedly revealed top government officials as expressing dissatisfaction with the financial support received from the main GCC countries and describing them as “half-states” with abundant amounts of money.
(AFP PHOTO / HO / EGYPTIAN PRESIDENCY)
The Gulf Cooperation Council (GCC)
The change in Egypt’s government, following the ouster of former Islamist president Mohamed Morsi, caused a split in the GCC. This saw the UAE, Saudi Arabia and Kuwait pledging billions of dollars in financial support for Egypt. The three countries pledged more than $12bn in aid to Egypt, forming 63% of total Arab investments.
In recent comments, however, the GCC said it stands fully with Egypt and its people in the fight against terrorism and protecting its citizens at home and abroad.
The February statement added that GCC countries recognise the importance of cohesion and integration with Egypt, considering that the security and stability of Egypt translates into the GCC’s stability.
When asked how Egypt can afford to buy $5.7bn worth of military equipment while it experiences dire economic conditions domestically, it was stated that the Gulf countries, primarily Saudi Arabia, will finance it.
Saudi Arabia, Egypt’s Gulf backbone
Since the ouster of Morsi in July 2013, Saudi Arabia has been a strong backer of Egypt, both financially and morally. The Gulf kingdom, a long-time critic of the Muslim Brotherhood, formally declared the Brotherhood a terrorist organisation in March 2014. It has also constantly helped Egypt’s ailing economy with aids and loans.
Saudi Arabia, currently investing more than $5.7bn in Egypt, is the largest investing Arab country in Egypt, with 27% of total Arab investments.
The kingdom is followed by the United Arab Emirates (UAE) with more than $4.5bn in investments, then Kuwait with more than $2.7bn in investments.
Saudi Crown Prince Muqrin bin Abdullah bin Abdel Aziz Al-Saud and Saudi Finance Minister Ibrahim Abdulaziz Al-Assaf are to attend the summit in Sharm El- Sheikh, heading a delegation of 27 Saudi chambers of commerce and 170 investors.
Al-Sisi met Saudi King Salman Bin Abdulaziz on 1 March. The president’s visit to the kingdom was the first since King Salman ascended to power after the death of King Abdullah
Al-Sisi reinforced the need for a joint Arab force, “not for attacking, but for defending the security of our countries”.
