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The United Arab Emirates recently unveiled a staggering $35 billion investment in Egypt to acquire development rights along the Mediterranean coast. The announcement has since paved the way for Egypt to float its currency, easing a years-long currency crisis and paving the way for a larger bailout from the International Monetary Fund. But why exactly does the UAE invest approximately 7% of its GDP in Egypt? What impact does this agreement have on politics in the Middle East? What does this mean for the flow of petrodollars—the vast sums generated by Gulf oil revenues—through the global financial system? In this episode, we speak with Ziad Daoud, chief emerging markets economist at Bloomberg Economics and co-author of the new issue of Bloomberg News. event About the huge investments in the UAE. This transcript has been lightly edited for clarity.
Key insights from the Pod:
What we know about the $35 billion UAE-Egypt deal — 5:14
A brief economic history of Egypt — 7:30
Abu Dhabi ADQ’s role in investing — 10:55
What Abu Dhabi gets from this deal — 12:49
Geopolitical motivations — 17:00
Energy Considerations — 19:15
Can megacity planning work? — 22:29
Reception of the deal in Egypt — 24:04
Reforming the Egyptian Economy — 26:06
Petrodollars and Middle East Investments — 29:55
The military’s dominance of the Egyptian economy — 32:14
Will Egypt be different this time? — 35:24
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