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EU Pledges Egypt 1 Billion Euros in Financial Aid

A boy checks the calendula flowers, usually exported and used for cosmetics, pharmaceuticals, and traditional medicine, during the annual calendula flower harvest, at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. (Reuters)
A boy checks the calendula flowers, usually exported and used for cosmetics, pharmaceuticals, and traditional medicine, during the annual calendula flower harvest, at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. (Reuters)
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EU Pledges Egypt 1 Billion Euros in Financial Aid

A boy checks the calendula flowers, usually exported and used for cosmetics, pharmaceuticals, and traditional medicine, during the annual calendula flower harvest, at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. (Reuters)
A boy checks the calendula flowers, usually exported and used for cosmetics, pharmaceuticals, and traditional medicine, during the annual calendula flower harvest, at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. (Reuters)

The EU on Friday said it would provide Egypt with 1 billion euros ($1.07 billion) in short-term financial aid to help stabilize the country's economy.

Egypt agreed last month to an expanded $8 billion support program with the International Monetary Fund and a deal with the EU worth billions to boost cooperation and help curb migration, as it is struggling with a prolonged economic crisis linked to chronic foreign currency shortages.

The 1 billion euros in short-term aid is part of a bigger package worth 5 billion euros in loans, the statement said. Another 4 billion euros were scheduled as longer-term assistance over the period 2024-2027, but still had to be adopted by the bloc's 27 members.

The loan is meant to address Cairo's deteriorating fiscal situation and financial needs, notably after the outbreak of the Gaza war, the Houthi militia attacks in the Red Sea and the repercussions of Russia's war of aggression against Ukraine, the statement said.

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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.