Egypt seeks support from GCC banks for food imports

Egypt is reportedly seeking up to $1.4 billion in financing from Gulf lenders to secure food imports, as supply disruptions linked to the Iran conflict push up global agriculture prices.

The General Authority for Supply Commodities, an affiliate of the Ministry of Supply and Internal Trade, intends to borrow up to $700 million from GCC banks to cover essential food imports, Asharq Business reported, quoting three unidentified sources. 

A consortium, comprising the UAE’s First Abu Dhabi Bank and Emirates NBD, as well as Bahrain’s Arab Banking Corporation, is likely to provide the funding, which may be finalised in the third quarter of 2026.

The loan, backed by a guarantee from Egypt’s finance ministry, will be used to import staple commodities, including wheat and corn.

The government is also arranging $700 million in Islamic financing through the Saudi Arabia-based Islamic Development Bank.

The closure of the Strait of Hormuz and adverse weather have led to agricultural prices reaching a two-year high. Fertiliser shortages and lower crop yields are adding to the woes.

The North African nation’s current reserves of basic commodities can cover about six months of consumption.

Further reading:

• Inflation expected to rise but Iran war impact to vary by country
• The next food shock will not look like 2022
• Hormuz crisis ‘threatens crops for developing world’

The government is planning to purchase about 5 million tonnes of local wheat this season, the report said, although key goods, such as wheat, rice, sugar and cooking oil, remain at “comfortable levels”.

In April finance minister Ahmed Kouchouk said the government is banking on higher public revenues from exports and sale of government enterprises to slash its foreign debt by $1 billion to $2 billion in its 2026-2027 budget.

Borrowing will be trimmed to around 10 percent of GDP during the next fiscal year while debt servicing will be reduced to about 35 percent in the medium term, the minister said, without specifying the current servicing level.