In another case at the same airport, officials apprehended five foreign nationals who tried to smuggle gold worth Rs.24.4 million
Larger foreign donors have been cautious about lending money to economies hit by the Arab Spring, but Qatar is using its natural gas wealth to establish itself as an economic force in the region.
Some of its aid involves investment that could be very profitable if North African economies eventually resume growing rapidly.
The $2 billion deposit from Qatar would be a significant boost to Egypt’s foreign reserves, which have more than halved since the start of last year to $14.4 billion in July. The Egyptian finance minister said on Monday that the first $500 million payment from Qatar was expected within a week.
The announcement followed news in June that state-owned Qatar Petroleum (QP) was involved in a $3.7 billion financing package to build an oil refinery on the outskirts of Cairo, one of the biggest industrial projects announced since Egypt’s revolution. QP International committed over $362 million to buy a 27.9 per cent stake in the project.
And last October Qatari Diar, the property arm of Qatar’s sovereign wealth fund, signed a $544 million contract to develop two real estate projects in Egypt, in Cairo and Sharm El Sheikh.
Qatar has also thrown an economic lifeline to Tunisia, which in April raised $500 million at a 2.5 per cent interest rate via a private placement of debt to Qatar.
In May the Qatari government said it was reviving plans to build a $2 billion oil refinery in Tunisia after years of delays, potentially expanding the North African country’s refining capacity more than fourfold.
In Morocco, Qatar’s plans include a 50-50 investment joint venture worth $2 billion, agreed late last year, to help the country fund major development projects.
In recent years Qatar has embarked on a policy of investing around the world.
In North Africa, its investments since last year have focused on energy and banking, two sectors which can be expected to grow because of young populations and relatively high population growth rates, as well as on tourism.
Qatari Diar said last October that it would build an $80 million tourism and leisure complex over 40 hectares in Tunisia’s southern city of Tozeur, a top tourist destination.
Qatar’s state-backed QInvest sealed a deal to hive off the investment banking business of Egypt’s EFG Hermes through a joint venture in which QInvest would own 60 per cent — a deal which would provide money for EFG, the Middle East’s biggest home-grown investment bank, to expand across the region.
And Qatar National Bank, the Gulf country’s biggest lender, which is 50 per cent government-owned, agreed to buy a majority stake in Morocco’s Union Marocaine des Banques.
“Given the amount Qatar has to invest, it is looking for opportunities in the region that offer commercial return,” said a Doha-based economist.
Reuters
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