US assistance to the country includes $1.3bn in military aid and $250m in economic aid, so the US aid is only 0.4% of the GDP, El-Naggar explained. “Any Egyptian government should thank the US government for all this aid, and refuse them as the number is dodgy,” El-Naggar said. According to the World Bank, Egypt’s GDP, based on its 2010 purchasing power, was valued at $500bn, making US aid “insignificant overall” El-Naggar said. He further noted that if Egypt chose to suspend the energy subsidies offered to American companies operating in the country as well as some local companies (which together cost state $80bn), the aid would be unnecessary. “The aid is only 8% of the energy support which Egypt offers,” he said. Many of the US firms in Egypt are involved in the energy sector. Oil and natural gas production in Egypt provide energy for export to the US in addition to lucrative investment opportunities for American companies. Other observers have called for suspending US aid to the country before in 2012. However, some economic experts, especially in the US, fear that discontinuing economic aid will result in the loss of influence in the region.
Posted on: Sun, 07 Jul 2013 12:05:02 +0000