CAIRO - The United Arab Emirates has agreed to grant Egypt $1 billion and lend it another $2 billion, an Egyptian source said on Tuesday, throwing it a financial lifeline after the army ousted the country's Islamist president last week.

The source also said Saudi Arabia may lend Egypt another $2 billion, which he expected to be confirmed within two days.

Be the first to know - Join our Facebook page.


Egypt's finances have been devastated by political and economic instability since the popular uprising that pushed Hosni Mubarak out of the presidency two and a half years ago.


The UAE's $3 billion was expected to be part of a larger financial package from the Gulf emirate, said the source close to the talks. The loan would be in the form of a deposit at Egypt's central bank, although the interest rate and maturity had yet to be finalized.