Egypt’s banking sector slips under UAE grip with controversial deal

Egyptian journalist Mohamed Nasser, presenting his show on Mekameleen TV, unveiled a stunning buying deal in which the United Arab Emirates (UAE) bought Banque du Caire, one of the oldest and most respected banks of Egypt, at a mere $1 billion, much less than what was originally offered. Many have termed the deal “suspicious,” and serious concerns have been voiced regarding Egypt’s economic future as well as that of the UAE’s growing control over major state institutions.

Who Really Stands to Gain from the Banque du Caire Sale?

Banque du Caire, established in 1952, is a huge bank with assets of over $7 billion, with three million customers in Egypt and overseas. The Egyptian government turned down a $2 billion bid for the bank in 2008. It has now been sold for less than half that amount after 17 years, raising questions about the timing and reasons behind the deal.

UAE’s Increasing Dominance Over Egypt’s Banking Landscape

Banque du Caire is not a one-off purchase—the UAE has acquired a number of Egyptian banks over the past few years. 

These UAE buys, says Mohamed Nasser, have placed millions of Egyptian banking details in the hands of the Emiratis—and perhaps the Israelis, with whom Abu Dhabi enjoys such intimate connections. He added that Israel once monitored Egyptian papers to pick up family and demographic information—but with UAE-controlled banks, now they can gain financial information straight.

UAE Extends Grip Over Egypt’s Strategic Sectors

Outside of banking, UAE investment has entered into agriculture, food processing, pharma, education, and healthcare, giving the Emirati unprecedented hold on Egypt’s economy. Among the most important Emirati acquisitions. 

Does a Sudan-Style Situation threaten Egypt?

Nasser cautioned that Egypt may take the route of Sudan, where the UAE has been implicated in backing the Rapid Support Forces (RSF), aggravating violence and instability. The UN envoy of Sudan even implicated Abu Dhabi in seeking to splinter Sudan. It raises suspicions if the UAE would employ its increased economic clout in Egypt to similar political power.