The Central Bank of the UAE and Central Bank of Egypt have signed a bilateral currency swap agreement valued at Dh5 billion ($1.36 billion) or 42 billion Egyptian pounds. This agreement aims to strengthen economic ties between the two countries and reflects their robust relationship.
The currency swap allows for the exchange of currency between the parties, enhancing cooperation and promoting economic and financial market development. The UAE is Egypt’s largest international investor, with investments exceeding Dh55 billion, and their non-oil trade has seen significant growth over the years. This agreement marks another step towards deepening cooperation and enhancing financial stability in both nations.
Additionally, the Central Bank of the UAE and the Central Bank of Egypt are aligning their efforts with the broader collaboration initiatives set forth by the leadership of both countries. This multifaceted approach encompasses various sectors, including trade, investment, and finance, all of which contribute to fostering mutual interests and enhancing financial stability.
The UAE and Egypt, being key players in the Arab world, have cultivated a robust trade and economic partnership. The UAE’s substantial investments in Egypt, exceeding Dh55 billion, underscore the depth of this relationship. Over the past 22 years, non-oil trade between the two nations has surged, reaching Dh247.68 billion, marking a remarkable increase of 3,635 percent since 2000, as reported by the Federal Competitiveness and Statistics Centre.
Moreover, in May 2022, the UAE, Egypt, and Jordan entered into an industrial partnership agreement with the aim of propelling sustainable growth. This collaboration also led to the creation of a $10 billion investment fund targeting five priority sectors: petrochemicals, metals, minerals, textiles, pharmaceuticals, and agriculture. These strategic initiatives further solidify economic cooperation and open doors for extensive trade and investment opportunities.
Several UAE companies, including Emaar Properties and Aldar Properties, have actively pursued investment opportunities in Egypt. Emaar Properties, one of the UAE’s leading real estate developers, along with Aldar Properties, Abu Dhabi’s largest listed developer, have played a pivotal role in advancing investment in Egypt.
Hassan Abdalla, the Governor of Egypt’s central bank, expressed confidence that this currency swap agreement would enhance cooperation between the financial sectors of both countries. It follows a similar agreement signed by the UAE central bank with its Turkish counterpart in the previous year, aimed at bolstering trade and investment ties.
The currency swap agreement between the Central Bank of the UAE and the Central Bank of Egypt signifies a significant step toward deepening economic collaboration, fostering financial stability, and promoting mutually beneficial trade and investment opportunities between the two nations.
