20 hours ago
Securitizing Ras Shokeir revenues offers new asset investment model without ownership transfer: Bokra Holding
Ayman El-Sawy, Founder and CEO of Bokra Holding, hailed the recent decision to transfer ownership of a vast land plot in the Ras Shokeir area—spanning approximately 174.4 million square meters on the Red Sea coast—from the state to the Ministry of Finance as a pivotal step toward modernizing Egypt's state asset management strategy.
El-Sawy emphasized that this move aligns with a broader national vision to reduce public debt and finance large-scale development projects through innovative, non-traditional financial instruments. Chief among these tools is the use of sovereign sukuk, which enable the government to leverage the value of its assets without relinquishing ownership.
'This model allows the state to say to investors: 'Here is a fixed asset that generates stable returns—you can benefit from those returns over a defined period, in exchange for capital that will be invested today in key national projects,'' El-Sawy explained.
He stressed that this represents a transformative shift in asset management—relying on the securitization of revenue streams rather than the sale of the underlying asset. In practical terms, this creates liquidity without compromising national ownership. El-Sawy contrasted this model with previous approaches, such as the direct land sale seen in the Ras El Hekma project, noting that Ras Shokeir follows a fundamentally different path. The land in question was allocated via presidential decree specifically for the purpose of securitizing future revenues through sovereign sukuk.
Under this framework, the Ministry of Finance—now officially responsible for managing the state's private assets—will issue sukuk offerings tied to clearly defined projects in Ras Shokeir. These issuances will target strategic investors and are designed to ensure transparency, economic feasibility, and investor confidence.
El-Sawy also highlighted that national security considerations remain fully intact, with military oversight maintained in strategically sensitive areas along the Red Sea coast.
'We are not selling our assets, nor are we giving them away,' El-Sawy concluded. 'We are optimizing their use—turning them into smart, sustainable financing tools. Sovereign sukuk are no longer a luxury—they are a strategic necessity. Whether Ras Shokeir becomes the next Ras El Hekma remains to be seen. But what's certain is that Egypt is entering a new era of disciplined, forward-looking investment in its state resources.'
