Economic experts said Qatar's recent pledge to provide aid to Egypt will help restore the Egyptian economy after its downturn in 2011.
The aid pledge came after talks on August 11th in Cairo between the Emir of Qatar, Sheikh Hamad bin Khalifa Al Thani, and President Mohamed Morsi.
The two sides discussed ways to co-operate and methods for Qatar to bolster the Egyptian economy, including a $2 billion bond infusion into the Central Bank of Egypt.
Last week, Qatar deposited $500 million in the form of treasury bonds into the Central Bank of Egypt. The remaining $1.5 billion will be deposited in mid-September.
Al Thani also confirmed that Qatari investments will expand in Egypt.
"Despite the importance of political and diplomatic relations between the two countries at this time, it is businessmen that play major role in translating this rapprochement by planning for Qatari investments in Egypt through on-going meetings between businessmen of both countries," said Mahmoud Mansour, a member of the Egyptian Businessmen Association.
"Qatar is interested in investing in financial services, infrastructure, petrochemicals, water plants and the power generation sector," Mansour said.
Investments are expected to top $10 billion in those sectors, in addition to investing in the Suez Canal and the Port of Alexandria, according to Mansour.
Qataris are seeking to invest in the services and logistics segments of the Suez Canal in efforts to transform the channel into an international free zone for assembly operations, storage and global transit, Mansour said.
He added that the initiative would quadruple the canal's current revenue.
Qataris also proposed a project to develop the Port of Alexandria to make it a competitor to the world's largest ports, Mansour said.
"A large portion of the discussions also address the development of a package of legal measures to facilitate fund transfers and business travel between the two countries, which would serve as a reassuring sign that any businessman would want to see before investing in any country in the world," he said.
Zahed Abdul Karim, of the Chamber of Industry of Egypt's Ministry of Industry and Foreign Trade, said assistance from Qatar will bolster Egypt's economy, upgrade Egypt's financial status in the eyes of investors and shore up its foreign currency reserves.
Abdul Karim said such financial improvements could then help Egypt acquire a $3.2 billion loan from the World Bank to help overcome its budget deficit, currently sitting at $22.5 billion.
He said the Qatari-Egyptian Business Council is currently holding meetings and its decisions are expected to be announced in September
"The talks are not confined to establishing a Qatari investment presence in Egypt," Abdul Karim said. "They also address the participation of Egyptian investors and businessmen in the construction of sports facilities in Qatar."
Egyptian officials are considering a range of economic measures in tandem with the aid package to restore the nation's economy.
"Acquiring deposits, loans, and aid is not enough," Abdul Karim said. Thus, "the government is considering plans that would provide quick liquidity, such as the issuance of foreign currency bonds to finance development projects, which would raise employment rates and revitalise the economy".
"The government is also considering re-activating tax collection in addition to rationing government spending," he said.
Cairo University economics professor, Dr. Saad Abdul Ghaffar, said the recent economic rapprochement between the two countries will be a driving force in Egypt's financial markets and will protect Egypt's credit rating from being downgraded in the global market.
Abdul Ghaffar said the aid will be invested in the industrial and agricultural sectors and will strengthen existing projects that are in need of support.
"This will reflect directly on the Egyptian street as the proposed large projects, especially in Alexandria and Suez, will create at least 200,000 job opportunities for Egyptian youth, which is very vital for Egypt in view of the high unemployment rate among young people," he said.
Qatari aid and investments will also send reassuring signals to international financial institutions like the World Bank and other lending organisations, which would then open the doors for other Gulf investments, especially from Kuwait and the UAE, Abdul Ghaffar said.