Egypt gets financial boost from the World Bank

The World Bank has revealed ambitious plans to extend more than $6 billion in financial assistance to Egypt over the next three years, aiming to bolster the nation's development agenda. The aid package includes a provision of $3 billion for government initiatives and another $3 billion earmarked for the private sector, pending approval from the World Bank’s board of directors, according to a statement from the multinational lender.

Egypt, the Arab world’s most populous nation is in dire need of financial support as it grapples with a profound economic crisis marked by rapid inflation. The nation's economy, dominated by military-affiliated enterprises, has been buffeted by economic shocks, including attacks on shipping in the Red Sea by Houthi rebels which have severely curtailed Suez Canal revenues, depriving Cairo of a crucial source of foreign currency.

The World Bank's new loan commitment comes as part of a wave of support from the United Arab Emirates and the International Monetary Fund. Earlier this month, the IMF approved an expanded $8 billion loan package for Egypt after Cairo launched significant reforms, including increasing interest rates and transitioning to a flexible exchange rate.