UAE to supply Egypt with oil products

Abu Dhabi

CAIRO, September 3, 2014 – Egypt’s ministry of oil told Reuters on Sunday that the UAE would provide the country with around $8.7 billion worth of oil products over the next year.

The deal came into effect Monday, with products to be supplied from this week until September 2015.

Some of the petroleum products are to be funded by grants and the rest under a credit agreement that Egypt will repay in installments.

Since Egypt ousted former president Mohamed Morsi in 2013, it has received more than $20 billion in grants, loans and petroleum products from the UAE, Saudi Arabia and Kuwait.

An official told Reuters on Sunday that Egypt’s monthly imports of petroleum products total $1 billion-1.3 billion.

Egypt, which has a population of around 86 million people, is struggling to keep up with its rapidly increasing energy demand. The country experiences daily power cuts.

In July 2014, Egypt hiked up fuel prices by more than 70 percent and reduced energy subsidies that are costing around $15 billion per year.

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