Egypt in Talks with UAE for $400 Million Wheat Financing

Egypt is in talks with the United Arab Emirates for USD 400 million (EGP 12.31 billion) to finance wheat purchases, Egyptian Minister of Supply and Internal Trade Aly Moselhy told Bloomberg on 20 July.

Moselhy did not indicate when a deal would take place, but explained that the funding would be provided by the Abu Dhabi Fund for Development by payments of EGP 100 million (USD 3.78 billion).

The move comes amid uncertainty and rising prices due to Russian withdrawal from the Black Sea grain export agreement which had facilitated the supply of Ukrainian and Russian grains to global markets.

“We are not pleased with the Russian withdrawal from the UN grain-export deal,” Moselhy told Bloomberg.

On 9 June, the Egyptian cabinet denied a Reuters report claiming that Egypt is delaying opening letters of credit for wheat purchases to ease foreign currency pressures.

The country has been facing a foreign currency shortage amid an economic crisis exacerbated by the Ukraine war.