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Qatar transfers $1bn to Egypt to meet interim finance needs

City, Street, Urban REUTERS/Mohamed Abd El Ghany
Qatar Investment Authority deposited the funds as due diligence on the assets and finalising a deal will likely take time

Qatar Investment Authority has deposited $1 billion with Egypt’s central bank amid talks to acquire stakes in some state-owned entities, Bloomberg reported, citing unnamed informed sources.

Due diligence on the assets and finalising a deal will likely take time; therefore, the $445 billion sovereign fund deposited the cash to help Egypt meet its interim finances, sources added.

The news agency reported last month that Qatar was in advanced talks over a deal worth about $2.5 billion. 

Recently, ratings agency S&P has raised Qatar’s long-term sovereign credit rating to ‘AA’ from ‘AA-‘, citing improvements in the government’s fiscal position.

“Qatar’s debt interest costs as a share of government revenue have fallen, and we expect them to remain low because the government is repaying maturing debt,” the agency said in a statement.

S&P believed higher oil prices should result in strong government surpluses in 2022-2023.

Qatar, which hosts the 2022 FIFA World Cup this month, is one of the world’s largest exporters of natural gas and has benefited from huge windfalls from soaring global oil and gas prices.