EconSource: UAE urges Egypt ‘fiscal consolidation’ to help revive economy

Follow the latest in economic news and developments about the Arab transition countries. 

The United Arab Emirates, which is backing Egypt with billions of dollars in aid, said the North African country needs to shore up public finances and invest in infrastructure to revive an economy battered by unrest. Sultan Al Jaber, the UAE minister of state overseeing assistance to Egypt, also urged institutions such as the IMF and the World Bank to show “flexibility” in dealing with the new leadership in Cairo. [Bloomberg]
Cairo has created a list of projects to be sent to Gulf countries including the UAE, Saudi Arabia and Kuwait to provide funding worth $7.66 billion. The package contains infrastructure projects including construction of sewage stations, road and bridges projects, constructing social housing units and electricity plants. [Cairo Post]
While the domestic political climate has improved since the adoption of the constitution in January 2014 and the appointment of Mehdi Jomaa’s caretaker government, the fiscal and the external repercussions of the Arab Spring and the loss of competitiveness over the past few years continue to take their toll on the economy, says Moody’s Investors Service. [CPI Financial]
UNHCR representative to Jordan, Andrew Harper, on Wednesday urged the World Bank to turn the loans extended to Jordan to address the Syrian refugee burden to grants. [Jordan Times]
Also of Interest:
Egypt, Tunisia ratings may be at “low point” – Fitch | Reuters
Arab Investors Union: Foreign aid (to Egypt) cannot build an economy | Egypt Independent
World Bank’s delegation will visit Egypt for future strategy talks | Amwal Al-Ghad
Egypt aims to raise $1 billion through investment fund to support tourism | Reuters
Egypt sees lower consumption of octane 95 in 2013/14 | Ahram
Restructuring Libya’s SWF Zawya DJ
EBRD loans Morocco €383 million since Sept. 2012 to fund 18 projects | MWN
Morocco: Reforming taxation of the financial sector cost state treasury MAD 2.5 billion | MWN
Morocco and Saudi Arabia sign MoU for trade exchange | SPA
Tunisia : Japan gives billions for 11 projects | NAP
Op-ed: Yemen’s youth | Yemen Times
Algeria to enhance economic co-operation with US | Magharebia