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EGYPT - Struggling to make ends meet.

Summary: Could economic pressure and a dearth of hard currency tip Egypt over the edge?

Since taking power three years ago in a coup, President Ab- del Fattah el-Sisi of Egypt has benefited from popular exhaustion with social upheaval and generous funding from overseas pa- trons, primarily Saudi Arabia, to prop up his counter-revolution.

Aid from Saudi Arabia -- a long- standing effort from the Saudis to support Sisi's administration after the overthrow of the Muslim Brotherhood regime -- provides a buffer to Egypt's balance of payments problems. The Gulf states promised some $12bn of aid to Egypt in the wake of the overthrow of President Mohamed Morsi in 2013.

While many Egyptians supported Sisi during his first year in office thanks to the return of security and the end of the worst of these chronic power outages, both of which helped improve business sentiment in Egypt, more needs to be done to boost the economy. Aid transfers pale in comparison to the country's needs for hard currency, which climbed close to $80bn in the 2014&ndash%3

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Publication:African Banker
Geographic Code:7EGYP
Date:Aug 31, 2016
Words:188
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