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Grand Egyptian Museum Delays Opening Amid Regional Developments

Grand Egyptian Museum Delays Opening Amid Regional Developments

CairoScene12 hours ago

Originally set for July 3, the official opening of the Grand Egyptian Museum is now postponed to the last quarter of 2025.
Jun 14, 2025
The long-anticipated official opening of the Grand Egyptian Museum (GEM) has been postponed, with a new date expected in the final quarter of 2025. Originally slated for July 3, the delay comes in response to 'current regional developments', according to a statement released by Egypt's Ministry of Tourism and Antiquities on June 14.
The decision is positioned as a strategic and symbolic one, intended to ensure that the inaugural ceremony reflects the scale and significance of Egypt's cultural legacy. Officials emphasized that Egypt remains committed to hosting a global event that befits the grandeur of its ancient heritage and the international standing of the Grand Egyptian Museum.
Since opening its doors in a limited capacity earlier this year, the museum has welcomed visitors under a 'soft opening' model that has already drawn international attention. These previews have offered glimpses into its vast exhibition halls, monumental atrium, and immersive storytelling approach.
The official inauguration, however, remains a critical milestone—one that Egyptian authorities hope to reframe as a message of unity and cultural continuity in turbulent times.
More information on the revised inauguration date will be announced following coordination with relevant stakeholders, ensuring that the global debut of the Grand Egyptian Museum lives up to its historical weight.

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Sukuk are similar to shares in that 'both represent a common stake in the ownership or usufruct right from a profit-generating asset, or in the capital of a profitable project,' as explained on the EFCST's website. The key difference, however, is that 'sukuk are a financing tool recorded outside the issuing company's budget, whereas shares represent a common stake in the company's capital, making shareholders part-owners in the issuing company.' Sukuk also have a fixed term specified as part of the deal unlike shares, which remain valid as long as the company exists. Upon the end of the term, the sukuk holder is entitled to their full capital amount 'regardless of the value of the issuer's assets or their ability to repay debts to others,' unlike shareholders. This renders sukuk a 'low-risk' investment, according to the EFCST's website. Since the law came into effect nearly five years ago, the Finance Ministry has issued sovereign sukuk only once in February 2023. The underlying assets were made up of a portfolio of government-owned properties under lease. The three-year issuance, worth US$1.5 billion, was met with strong demand. The anticipated issuance referenced in the latest presidential decree would mark Egypt's second sukuk offering. In April, Finance Minister Ahmed Kouchouk announced the government's intention to issue $2 billion in sovereign sukuk. This aligns with the ministry's statement on Thursday, which noted that part of the Ras Shokeir land will be used as collateral for the new issuance. Sources said the mechanism is intended to differ from the Ras al-Hikma deal, in which land ownership was directly sold to a strategic investor via a company in which the Egyptian government holds a stake. By contrast, in the Ras Shokeir case, the sukuk are expected to be offered to a broad range of potential investors — including Egyptian and foreign individuals, as well as banks and investment institutions. The offering would not transfer ownership of the land itself. Instead, sukuk holders would be entitled to a 'common right' to the project's profits or a share of its financial returns, without holding any direct ownership of the land. At the end of a sukuk term, holders are repaid the full value of their initial investment, at which point their relationship with the asset ends. Sources unanimously emphasized that, throughout the sukuk's duration, ownership does not get transferred under any circumstances. This, they stressed, is very clear. Even in the event that the government defaults on repayment, the asset cannot be seized or transferred. Senator Samy noted that the Senate was particularly keen to prevent any possibility of ownership transfer related to sukuk issuances — a departure from the earlier sukuk law passed in 2013, which did not address the issue of asset ownership and failed to explicitly prohibit agreement clauses that might entitle holders to a stake in the asset in the event of non-payment. Under the new framework, responsibility for repayment lies entirely with the issuer — in this case, the state — rather than with the asset itself. 'The public treasury is the guarantor,' an official at the Planning Ministry told Mada Masr. 'The investor doesn't need the asset itself, but instead relies on the state's ability to pay.' A judicial source, who is a deputy to the State Council president, told Mada Masr that the details of the underwriting terms will ultimately be defined in the sukuk's issuance prospectuses. The government could include clauses allowing for the sukuk's term to be extended or other conditions to be introduced. Still, 'if the state is unable to repay the sukuk and its profits, it may be forced to swap debt for assets once again,' the source added. This, however, would reflect the government's broader debt management strategy — not the legal nature of the sukuk itself. In its Thursday statement, the Finance Ministry reiterated that the land was transferred under its authority to issue sovereign sukuk and 'reduce the government's debt burdens' — a 'favorable' alternative to selling the land, according to the ministry, as it can 'partner with financial and economic entities to replace existing debt with joint investment projects […] and spur the development of the land to generate sustainable income and create new job opportunities.' The most ambiguous aspect of the presidential decree lies in its reference to debt reduction. After all, sukuk are a form of debt. According to the International Monetary Fund's Government Finance Statistics Manual — and as reiterated in the IMF report on its third review of Egypt's Extended Facility Fund — sukuk are classified as part of public debt in the state budget, just like bonds, treasury bills, and other forms of borrowing. If these sukuk constitute new debt, how can the decree possibly contribute to reducing Egypt's mounting debt burden? One straightforward scenario can be found in the Finance Ministry's statement following the decree: only a portion of the allocated land will be used to back the sukuk, while revenues generated from future economic activity on the remaining land could be channeled toward repaying debt and covering interest payments. The World Bank official, speaking to Mada Masr on condition of anonymity, explained that the government could use its share of project revenues to cover periodic dues to sukuk holders — a strategy they described as a form of 'debt recycling.' Economic researcher Mohamed Ramadan suggests another scenario: 'an accounting game' in which payments the government owes to sukuk holders are labeled as 'returns' rather than 'interest.' This classification would exclude them from debt servicing records, thereby reducing the nominal size of the country's total debt on paper. Ultimately, the decree appears to signal the start of a broader shift — one that is likely to be followed by a series of further decisions clarifying the specifics of this approach and its true implications for the public and for public finances.

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