Egypt signs $350 mln in oil, power financing deals with Saudi

A boat sails along the Nile river, in Cairo on September 5, as the Garden city neighborhood, background, remains in darkness during a power cut. AP

Power cuts have become common in Egypt as the cash-strapped government struggles to supply enough gas to its power stations let alone upgrade a grid suffering from decades of neglect.

The energy crunch has become a political hot potato in the country, which has turned from a gas exporter into a net importer in recent years.

Lines at petrol stations and a shortage of gas were among the main public grievances against former president Mohammed Morsi of the Muslim Brotherhood.

But Arab Gulf allies have come to Egypt’s aid since the army, prompted by mass protests, ousted Mr Morsi last year.

Egypt has also turned to the UAE for oil products, signing deal in September that commits it to purchasing about 65 per cent of its needs from it in the next year.

* Reuters