Hazem el-Beblawi was speaking at an investors’ forum that brought to Cairo businessmen and officials from the Gulf countries. He said the outstanding arrears have weakened exploration and investment in the vital oil sector.
Egypt is seeking to attract Gulf investment into the economy that has been battered by nearly three years of unrest since the 2011 ouster of longtime autocrat Hosni Mubarak.
Saudi Arabia, the United Arab Emirates and Kuwait pledged more than $12 billion dollars in aid to Egypt following the July 3 coup that ousted President Mohammed Morsi, the Islamist who succeeded Mubarak after winning the first free presidential elections in the country’s history. The coup followed demonstrations by millions calling for Morsi to leave.
The Gulf aid, a mix of grants, cash deposits and oil and gas products, has propped Egypt’s ailing economy and improved its dwindling foreign reserves.
El-Beblawi told the conference his government approved settling $1.5 billion it owed to foreign oil firms.