Source: Arab Center Washington DC
Author(s): Khalil Al-Anani
On April 4, 2022, Gulf Arab countries pledged $22 billion to help Egypt avert a currency crisis resulting from the Russian war on Ukraine. The Egyptian pound lost about 14 percent of its value to the dollar. Additionally, Egypt has since the beginning of the year been facing a severe economic and financial crisis due to the effects of the COVID-19 pandemic and the consequences of the ongoing war in Ukraine. The surge in food, oil, and energy prices—coupled with the inefficient economic policies of the regime of President Abdel Fattah el-Sisi—increased the suffering of ordinary Egyptians, which raises the specter of another political and social turmoil similar to the Egyptian uprising in early 2011. The key questions now appear to be why Gulf countries seem keen to provide financial and economic support to Sisi’s regime and to what extent can the financial bailout really rescue it and Egypt in the medium and long terms?
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