The Central Bank of Egypt (CBE) announced on September 29, 2026, that Egypt and the United Arab Emirates (UAE) have renewed a currency swap agreement valued at 5 billion dirhams ($1.36 billion), equivalent to 69 billion Egyptian pounds. The agreement, which was first signed in 2023, has been extended for another five years. This renewal demonstrates the commitment of both parties to stimulating bilateral trade, consolidating financial cooperation, and supporting economic development in both countries.
The agreement was signed by Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Hassan Abdalla, Governor of the CBE. The initial agreement was signed when Egypt was facing significant challenges related to a severe foreign currency shortage, with the Egyptian pound depreciating substantially against the US dollar since March 2022. The renewal of the agreement is expected to support financial stability and facilitate trade and investment operations between the two countries.
The CBE and the UAE's central bank have expressed their commitment to strengthening economic ties between the two nations. Hassan Abdalla noted that the agreement is an extension of the close cooperation between the two countries and a tool to promote the use of local currencies in commercial and financial settlements. He also stated that this new phase could open up broader prospects for cooperation in financing and investment.
The volume of trade between Egypt and the UAE has seen significant growth. According to the Central Agency for Public Mobilization and Statistics (CAPMAS), the total trade between the two countries reached $9.7 billion in 2025, up from $6 billion in 2024, representing a 61.7% increase. Egyptian exports to the UAE stood at $7 billion in 2025, compared to $3.3 billion in 2024, marking a 112.1% rise.
The UAE remains a significant investor in Egypt. The value of Emirati investments in Egypt reached $4.7 billion for the fiscal year 2024/2025, compared to $38.9 billion for the fiscal year 2023/2024. The Egyptian government has been working to attract foreign investment to support its economic development plans.
The renewal of the currency swap agreement is expected to have a positive impact on Egypt's economy, which has been facing several challenges in recent years. The agreement will help alleviate the pressure on the Egyptian pound and support the country's foreign trade. Egypt has been implementing several economic reforms to address these challenges and attract foreign investment.
The cooperation between Egypt and the UAE is not limited to the financial sector. The two countries have been strengthening their ties in various fields, including trade, investment, and tourism. The UAE is one of Egypt's largest trading partners, and the two countries have been working to increase bilateral trade and investment.
Key points
- Egypt and the UAE have renewed a $1.36 billion currency swap agreement to boost bilateral trade and economic cooperation.
