Egypt Lands USD4.6B EU Financial Aid Deal to Advance Economic Reforms
(MENAFN) Egypt has formalized a significant financial aid agreement with the European Union, signing a memorandum of understanding for a €4 billion ($4.6 billion) support package aimed at advancing economic collaboration and domestic reforms.
The signing took place Wednesday during the inaugural Egypt-EU Summit in Brussels, attended by Egyptian President Abdel Fattah al-Sisi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa, according to a release from Egypt’s State Information Service.
Egypt’s Minister of Planning and Economic Development, Rania al-Mashat, and EU Commissioner for Economy and Productivity, Valdis Dombrovskis, jointly signed the declaration formalizing the €4 billion agreement.
In addition, Egyptian Foreign Minister Badr Abdelatty and EU Commissioner for Startups, Research and Innovation, Ekaterina Zaharieva, endorsed a memorandum securing Egypt’s involvement in Horizon Europe, the EU’s flagship research and innovation funding program.
Al-Mashat also signed a joint statement with EU Commissioner for Democracy and Demography, Dubravka Suica, related to funding for Egypt’s local social and economic reform projects.
The summit seeks to deepen a strategic alliance first announced in March 2024.
Addressing an economic forum held alongside the summit, President Sisi stated Egypt is “on the threshold of a new phase of economic cooperation with the European Union,” per a statement from the presidency.
Speaking to European business leaders, Egyptian companies, and international financial institutions, Sisi called for “a mutually beneficial investment partnership.”
He highlighted that Egypt offers “real opportunities” in vital sectors such as pharmaceuticals and vaccines, automotive and electric vehicles, fertilizers and petrochemicals, renewable and green hydrogen energy, microchips, artificial intelligence, defense industries, and logistics infrastructure.
Sisi underscored the “importance and weight of the economic partnership between Egypt and the EU,” pointing out that the EU was Egypt’s largest trading and investment partner in 2024, representing roughly 27% of the country’s foreign trade, with EU firms accounting for 32% of Egypt’s foreign direct investment stock.
He also revealed ongoing discussions about establishing a European investment corridor in Egypt to serve as a gateway to African and Arab markets, further integrating Egypt into European supply chains.
“The event is not the result of the moment,” Sisi said, “but the continuation of a growing path that began in March 2024, when we agreed to elevate Egypt–EU relations to the level of a comprehensive strategic partnership, followed by the first Egypt–EU Investment Conference in June 2024.”
President Sisi arrived in Brussels earlier Wednesday for the summit as part of an official visit to Belgium, according to the Egyptian presidency.
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