Qatar injects $2 billion into Egypt’s Central Bank after the Gulf state’s Emir, Hamad bin Khalifa al-Thani, visited Cairo. Qatar has now become the second state, after Saudi Arabia, to lend to Egypt without an International Monetary Fund loan in place. This loan didn’t come as a shock, and was in fact over due, since Qatar pledged about $10 billion last year to support Egypt’s economy with investments.
Qatar’s control over Egypt has been a source of great speculation with rumours circulating that claim the Muslim Brotherhood is planning to rent the Suez Canal to Qatar for ninety-nine years thus undermining Egypt’s sovereignty.
It seems for now the Suez Canal is in safe hands, however. The waterway, a vital source of foreign currency, earned $433.1 million in July, up from $415.9 million a month earlier, but 3.6% down from a year earlier when revenues stood at $449.2 million.
Egypt’s natural gas exports rose by 8.9% in the first five months of this year, hitting US$964.4 million. However domestic consumption of natural gas also increased 6.89% in the same period, while electricity consumption went up by 1.3%. Egypt’s heightened demand for natural gas has forced the country to up imports of a different type of gas used for domestic consumption.
Egypt urban inflation eases to 6.4% in July, from 7.3% in June as commodities prices fall.
Dubai’s Shuaa Capital swings to Q2 loss as the investment firm continued its restructuring efforts and booked one-off costs.