Egypt in talks with Saudi Arabia to roll over $5.3 billion in deposits

Key Points

1. Egypt is negotiating with Riyadh to renew $5.3 billion in central bank deposits that matured this month.
2. Saudi, Kuwaiti and Qatari deposits at the Central Bank of Egypt total roughly $18.3 billion.
3. The talks test how long Gulf states will keep underwriting Egypt's foreign currency position.

The latest:

Egypt is negotiating with Saudi Arabia over the renewal of $5.3 billion in deposits held at its central bank that came due in October, with the discussions centered on setting the new maturity, an official told Asharq Bloomberg on condition of anonymity. No final agreement on the term has been reached, the official said.

Details:

• The amount: The $5.3 billion traces back to financial support Saudi Arabia has extended to Egypt since 2014, according to the official. Riyadh separately holds $5 billion in short-term deposits at the Central Bank of Egypt that are rolled over annually, bringing total Saudi deposits to roughly $10.3 billion.
• What’s unsettled: The official said the current round focuses on the length of the renewal rather than the principal, and that the two sides have not yet agreed on a term. No timetable was given for concluding the talks. The Saudi Central Bank did not respond to a request for comment from Asharq Bloomberg.
• Precedent: Saudi Arabia announced on 29 November 2022 that it was extending a $5 billion deposit at the Central Bank of Egypt to support economic stability and deepen financial cooperation, according to the Saudi Press Agency. Riyadh said the extension ran alongside efforts to expand Saudi investment in Egypt in foreign currency.
• Other Gulf deposits: Kuwait holds $4 billion at the Central Bank of Egypt maturing in two tranches in April and September, while Qatar holds $4 billion in short-term deposits renewed annually, according to information available to Asharq Bloomberg. Combined with the Saudi funds, the three total about $18.3 billion.
• The UAE: The United Arab Emirates renewed a $1 billion deposit at the Central Bank of Egypt until July 2026, according to central bank data on the country’s external position. The bank’s report did not name the depositing states in its breakdown of short-term deposits.
• Trade ties: Bilateral trade between Egypt and Saudi Arabia reached about $18 billion in 2025, according to the Saudi General Authority for Statistics. Saudi exports to Egypt were worth roughly $11.5 billion against $6.61 billion in imports from the Egyptian market.
• The goods: Mineral products led Saudi exports to Egypt at $8.63 billion, and were also the largest category of Saudi imports from Egypt at $3.72 billion, according to the same statistics agency data.
• Power link: Egypt and Saudi Arabia are targeting the formal launch of their electricity interconnection project in mid-November, with a target capacity of 3,000 megawatts and investment estimated at about $1.8 billion, Egyptian Electricity and Renewable Energy Minister Mahmoud Esmat told Asharq Bloomberg on Thursday.

Background:

Egypt has leaned on Gulf support for a decade through dollar deposits at its central bank, equity stakes in oil and fertiliser companies, and payment facilities on petroleum products. Cairo devalued its currency three times from early 2022 to address an acute dollar shortage.

Between the lines:

The sticking point is duration, not principal — which keeps the money in Cairo but leaves open how firmly it is committed. The rollover pattern is visible across the Gulf: Saudi, Qatari and Emirati deposits are renewed in annual or multi-year increments rather than converted into longer-term commitments, so a recurring share of Egypt’s reserves depends on decisions taken a few months at a time.

What’s next

Watch for an announced term on the $5.3 billion, any Saudi Central Bank statement, the Kuwaiti tranche maturing in April, and the mid-November launch of the 3,000-megawatt Egypt-Saudi electricity interconnection.