Despite the Emirati billions, the people of Egypt are fighting the situation with austerity

Through the Emirati investment, which is considered the largest in its history, and which paved the way for the floatation of the Egyptian pound, Egypt was able to save its economy, as President Abdel Fattah El-Sisi is relying on this package of funds that his country recently received, to attract foreign investors to the country, which has witnessed a capital exodus. Which it needs to finance its huge debts.

The UAE intends to invest $35 billion in the real estate sector after obtaining the rights to develop an area on the Mediterranean coast, while the International Monetary Fund will provide a loan worth $8 billion. The European Union pledged to provide aid worth $8.1 billion, then the World Bank provided more than $6 billion.

In Cairo, there is a feeling that the country has returned to what it was before the Arab Spring revolution in 2011, except that the difficulties have become deeper and wider, and Egyptians say that Sisi’s leadership has done what previous governments did not dare to do, and reduced subsidies for things such as bread and electricity. The Ministry of Oil announced an increase in fuel prices a few days ago.

Today, people have become more dependent on payment in installments, not only to buy expensive goods such as furniture and appliances, but also for groceries, clothes, and even at the Cairo International Book Fair this year after publishers were concerned about sales.

While inflation has already reached a record high of more than 35% in 2023, prices of basic commodities such as sugar have doubled, prompting authorities to take measures to avoid what they say is price gouging by traders or distributors. The price of onions, whose traditional abundance in kitchens was a symbol of Egyptian culinary culture and an essential ingredient in street food such as koshari, rose by more than 400% within a year.

But further depreciation means higher prices, at least in the short term. Indeed, Egyptians know what awaits them. The country devalued its currency by 48% and reduced support at the end of 2016 to reach a loan agreement with the International Monetary Fund worth $12 billion. (Arabi Post)

Arabic Post


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