The UAE and Egypt have renewed their currency swap agreement for another five years. The currency swap remains valued at AED5 billion, or about $1.4 billion. The agreement aims to support financial stability and strengthen economic cooperation. It also seeks to encourage trade and investment between both countries.
The agreement involves the Central Bank of the UAE and the Central Bank of Egypt. Both institutions originally signed the arrangement in September 2023. The renewed agreement keeps the same AED5 billion value. However, the extension gives both countries another five years under the arrangement.
The agreement provides a framework for cooperation between the two central banks. It can also support transactions between the UAE and Egypt when needed. Meanwhile, both countries continue to expand their economic relationship. Their growing trade ties have increased the importance of financial cooperation.
UAE central bank governor Khaled Mohamed Balama said the renewal supports financial stability. He also linked the agreement to stronger trade and investment flows. Furthermore, the arrangement reflects continued financial cooperation between the two countries. It also supports broader economic ties between their markets.
Bilateral trade between the UAE and Egypt reached almost $10 billion in 2025. That figure represented a 62 percent increase from the previous year. Egyptian exports to the UAE more than doubled during the same period. They reached around $7 billion, according to the reported figures.
Meanwhile, Egyptian imports from the UAE reached almost $3 billion in 2025. These figures highlight the scale of commercial activity between both economies. As trade grows, financial cooperation can become increasingly important. The renewed currency swap provides another tool for supporting those ties.
The UAE has also expanded currency cooperation with other countries. In April, the UAE and Bahrain signed a AED20 billion swap agreement. That arrangement aims to encourage local currencies in cross-border trade and investment. The UAE has also maintained a separate agreement with China.
The UAE and China renewed their $4.9 billion currency swap agreement in 2023. That agreement received a further five-year extension at the time. Meanwhile, the UAE has explored additional financial cooperation with the United States. Those discussions reflected concerns about potential economic effects from regional instability.
Egypt is also working to attract more foreign investment. The country plans to introduce a new foreign direct investment strategy. The strategy includes 1,330 opportunities across 16 industrial sectors. Officials expect the plan to support investment and address trade-related challenges.
The UAE remains an important investor in Egypt’s economy. Abu Dhabi investment group ADQ is involved in the Ras El Hekma development. The project carries a reported investment value of $35 billion. It represents one of Egypt’s largest foreign investment deals.
The renewed currency swap therefore comes alongside wider economic cooperation. Both countries continue to develop trade, investment and financial links. The agreement provides another channel for central bank cooperation. It also reinforces the financial relationship between the UAE and Egypt.
The five-year renewal gives both central banks a longer period for cooperation. It also comes as bilateral trade continues to expand. Meanwhile, investment activity remains an important part of their economic relationship. The agreement could therefore support continued financial coordination between the two markets.
