Egypt has yet to receive a definitive response from Kuwait on the renewal of a $2 billion central bank deposit as the due date approaches, despite prior assurances it would be extended, a government official familiar with external debt dealings said. The deposit is due this April.
The official said negotiations with Kuwait were ongoing, with no final decision yet to reject renewal, but noted the situation has grown more complex, especially amid media tensions and Kuwaiti frustration over what was perceived as limited Egyptian support during the recent regional conflict involving Iran.
Kuwait holds a total of $4 billion in deposits at Egypt’s central bank, split into two tranches of $2 billion each; one renewed every April and the other every September.
The fate of the first Kuwaiti deposit due this month has come under scrutiny in local media, as Gulf partners have traditionally rolled over such funds to support Egypt’s economy.
According to the Central Bank’s 2024–2025 report, long-term Arab deposits total $9.3 billion, including $5.3 billion from Saudi Arabia and $4 billion from Kuwait.
The BBC has reported criticism from Gulf media figures and academics of Egypt’s stance on the war involving Iran, parts of which have affected areas in the Gulf.
Egypt’s Foreign Minister Badr Abdelatty met Kuwait’s Crown Prince Sabah Khaled Al-Sabah in Kuwait City on Wednesday to deliver a written message from President Abdel Fattah El-Sisi affirming “full solidarity,” with Kuwait “in the face of blatant attacks.” Kuwait has come under intensified retaliatory Iranian missile attacks.
Abdelatty further rejected any justifications for what he described as clear violations of international law and the UN Charter, and stressing that the security of Kuwait and the Gulf is an extension of Egypt’s national security, according to a Foreign Ministry statement.
The government source added that Kuwait’s hesitation comes at a time of declining foreign currency inflows into Egypt’s central bank, especially US dollars, due to the economic impact of the US-Israeli war on Iran.
Reduced revenues from key sectors such as tourism, the Suez Canal, and foreign direct investment has made the need for the Kuwaiti deposit renewal particularly important for the government.
Over the past three years, Suez Canal revenues have dropped sharply due to disruptions linked to the war in Gaza, falling from $8.7 billion in 2022–2023 to $3.6 billion in 2024–2025.
Egypt and Kuwait had been drawing closer prior to the war, with Kuwait planning to inject around $4 billion in investments into the Egyptian market, but escalating regional tensions have since put those plans on hold, according to the government source.
Meanwhile, the Egyptian Foreign Ministry said the Kuwaiti crown prince expressed appreciation for Egypt’s “historic and consistent support” and the strong bilateral ties, as well as a desire to further strengthen relations in line with the aspirations of both peoples.
He also praised Egypt’s recent efforts to de-escalate tensions and support regional security and stability.
