There are many questions about the Emirati, Saudi and Kuwaiti bank deposits that started flowing into Egypt and boosting the local economy and production. Many economists said that this Gulf aid is a “jolt of life” for the Egyptian economy and will have a significant role in the coming period in supporting the government amid the floundering economic activity and the lack of production. But others say that the money is just temporary relief, unless it is used to boost the quantity and quality of production.

About $7 billion has been added to Egypt’s foreign reserve balance since July. The money came from three countries: the United Arab Emirates, Saudi Arabia and Kuwait, according to Egypt’s central bank. Those deposits stabilized the financial and economic situation in Egypt. Hisham Ramez, the governor of the Central Bank of Egypt, said that the reserves have reached about $19 billion.

Those three Gulf states have promised $12 billion in deposits and aid to Egypt: $3 billion from the UAE ($1 billion in aid and $2 billion in deposits with the Central Bank of Egypt); $5 billion from Saudi Arabia ($2 billion in deposits, $1 billion in cash and $2 billion in oil and gas); and $4 billion from Kuwait ($2 billion in deposits, $1 billion in aid and $1 billion in oil derivatives).  

This comes at a time when Egypt returned $2 billion given by Qatar. Qatar had deposited that money in Egypt’s central bank as a short-term deposit, and then a dispute broke out between Cairo and Doha regarding amendments introduced by Qatar regarding the deposit agreement. Relations between Egypt and Qatar soured after the ouster of President Mohammed Morsi.