By Nicolas Parasie And Jay Solomon
SHARM EL-SHEIKH, Egypt--Saudi Arabia, Kuwait and the United Arab
Emirates pledged $12 billion to help stabilize Egypt's economy, in
the latest moves by these Persian Gulf states to rally behind
Cairo's general-turned-president, Abdel Fattah Al Sisi.
But the Obama administration didn't provide any new economic or
military assistance to Egypt at an international conference on the
Red Sea, highlighting the continued concern in Washington about the
pace of political reform in the country.
Secretary of State John Kerry announced no new U.S. financial
aid for Cairo after holding a bilateral meeting with Mr. Sisi in
the resort town of Sharm el-Sheikh.
Washington also continues to hold back providing new military
assistance to Egypt, which is facing threats from Islamic
extremists both in neighboring Libya and the Sinai Peninsula.
Mr. Kerry led a delegation of U.S. executives attending the
investment conference, including representatives from General
Electric Co., Microsoft Corp. and Coca-Cola Co.
"The United States is committed to supporting Egypt's economic
reforms, and I think that we can already see from what is happening
that those are taking hold," Mr. Kerry said, speaking at the tail
end of a long list of Arab monarchs and African statesmen.
"We all know also that there are challenges," he added. "And yet
every single one of us are here because through those challenges we
see and understand the extraordinary potential."
Mr. Sisi's ascension to power last year, in the wake of a
military coup d'état he led in 2013, has placed the U.S. at odds
with some of its closest Arab allies.
Saudi Arabia and the U.A.E., in particular, have strongly backed
Mr. Sisi and his crackdown against the Muslim Brotherhood Islamist
movement, which briefly came to power in Cairo in 2011 following
the overthrow of long-serving dictator, Hosni Mubarak.
Saudi and Emirati officials on Friday heralded Mr. Sisi as the
linchpin for security in the Middle East and a central cog in the
fight against Islamic State and al Qaeda.
"We all have to stand by Egypt because its security and
stability is the cornerstone in the security and stability of the
region," said the prime minister of the U.A.E. and ruler of Dubai,
Sheik Mohammed bin Rashid Al Maktoum.
The Obama administration has voiced concerns about the lack of
political freedoms in Egypt, and Mr. Sisi's crackdown on the media
and non-governmental organizations.
Riyadh and Abu Dhabi have committed more than $20 billion to the
Egyptian government since 2013 coup. The Obama administration has
pledged less than $2 billion and has placed a hold on some military
equipment, including F-16 fighter jets.
Saudi Arabia's Crown Prince Muqrin bin Abdulaziz appeared to
take a swipe at the Obama administration, charging some foreign
governments were judging Cairo and its fight against extremism
differently from their own campaign.
"We underline our firm stand behind the people and government of
Egypt," the Saudi royal said. "We call on the international
community not to follow double standards."
Egypt's economy has been struggling since political turmoil
erupted in 2011 but the largesse of the Persian Gulf states and a
more recent economic turnaround plan have markedly improved growth
prospects.
Mr. Sisi acknowledged the support from the Persian Gulf and
opened an economic conference in Sharm-El-Sheikh by thanking Saudi
Arabia, the United Arab Emirates and Kuwait.
The Egyptian president vowed to reduce unemployment and combat
terrorism as he attempts to jump-start his country's economy.
Egypt's economic revival also hinges on maintaining domestic
security. In the past few months, there has been a rise in violence
as a result of Mr. Sisi's government battle with Islamists.
The North African country is working on "a model for an Arab and
Islamic civilization with its true tolerant values. A country that
renounces violence, terrorism and extremism," Mr Sisi said. In
Sharm-El-Sheikh, where Mr. Sisi made his speech, security forces
were deployed widely, with helicopters circling the resort.
Economists have said that one of Mr. Sisi's biggest challenges
is tackling unemployment. Egypt, the Arab world's most populous
country with about 90 million people, experiences widespread youth
unemployment, considered one of the main reasons behind the mass
protests that led to the downfall of Mr. Mubarak.
Mr. Sisi said two-thirds of Egypt's population is under the age
of 40, and 30 million people are at employment age.
Write to Nicolas Parasie at nicolas.parasie@wsj.com and Summer
Said at summer.said@wsj.com