Thursday May 23rd, 2024
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Egypt Receives USD 20 Billion Second Tranche of Ras El Hekma Deal

The biggest foreign investment in Egypt’s history has been finalized, with the treasury receiving hard currency this week.

Cairo Scene

Egypt Receives USD 20 Billion Second Tranche of Ras El Hekma Deal

Egypt’s state treasury has received the second tranche from the Ras El Hekma deal with the UAE-based holding company ADQ (Abu Dhabi Sovereign Fund). This second installment amounts to USD 14 billion in financial inflows, in addition to relinquishing a USD 6 billion Emirati deposit with the Egyptian central bank. This deposit will be utilized to finance ADQ's projects in Egypt.

The payment arrived on schedule following Egypt's receipt of the first installment in February, totaling USD 15 billion, with USD 10 billion in financial inflows and a USD 5 billion Emirati deposit.

The Ras El Hekma deal is anticipated to alleviate USD 11 billion of Egypt's external debt, which reached USD 168 billion by the end of 2023. The deal has been a pivotal factor in mitigating Egypt's foreign currency crisis, with the central bank expected to inject USD 6 billion into the banking sector from the proceeds. This would provide sufficient liquidity to assist in facilitating imports beyond essential commodities, thereby expediting cargo clearance at ports.

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