This strategic partnership aims to bolster cooperation across various sectors, including renewable energy, trade, and security, while providing much-needed support for Egypt's economy.

The financial aid package will offer a combination of grants, loans, and macro-financial assistance.

A senior EU commission official revealed the breakdown to Reuters explaining that €5 billion will be allocated towards macro-financial assistance, €1.8 billion of investments, and €600 million in grants.

The macro-financial assistance includes €1 billion in emergency funding to be delivered this year.

The remaining €4 billion in macro-financial assistance is contingent upon approval by the European Parliament.

The International Monetary Fund (IMF) has recently expanded its Extended Fund Facility (EFF) loan programme for Egypt from $3 billion to $8 billion in response to the repercussions of the Israeli war on Gaza.

Moreover, Minister of Finance Mohamed Maait stated last week that Egypt is about to receive a $3 billion loan from the World Bank, along with other financing from several international institutions and governments.

These finances come amid a severe US dollar liquidity shortage Egypt has faced since March 2022 that has affected all the economic sectors in the country.