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Arab News
22-05-2025
- Business
- Arab News
Cairo plans economic independence as IMF program nears end
RIYADH: Egypt is preparing to transition away from its current economic reform program with the International Monetary Fund, which is scheduled to conclude by late 2026 or early 2027, according to the country's prime minister. Speaking during his weekly press conference, Mostafa Madbouly stated that the government is developing a long-term national economic strategy that will extend to 2030 and focus on sustaining growth without relying on international institutions, according to an official release. The comments come as Egypt attempts to stabilize an economy that has struggled with record inflation, a depreciating currency, and mounting debt. Over the past few years, authorities have pushed through reforms to unlock external funding, including a major IMF deal, Gulf-backed investments, and a record sale of state assets. In a release on its official social media handle, the Egyptian Cabinet quoted the prime minister as saying: 'We are aiming to develop a national program for the Egyptian state without relying on other international institutions. This will be linked to submitting, for the first time next year, a three-year budget.' In response to a question about the government's vision beyond the current IMF program and its efforts to preserve the gains reflected in recent positive economic indicators, the release added: 'Madbouly confirmed that the government is drafting a detailed plan extending to 2030. This reflects a broader outlook beyond the IMF program, which ends by late 2026 or early 2027.' Egypt's current $8 billion program with the IMF began as a $3 billion agreement in late 2022 and was expanded by $5 billion in March 2024. The deal includes major reforms such as currency devaluation, sharp interest rate hikes, tighter fiscal policy, and privatization of state-owned assets. So far, Egypt has received about $3.3 billion, with a fifth program review conducted in early May 2025. The IMF continues to stress the importance of accelerating structural reforms and managing debt levels. In the release, Madbouly emphasized that the government is prioritizing macroeconomic stability and social development. He pointed to the growing importance of social support programs, saying they would continue to expand annually. He also underlined the importance of technological advancement, industrial development, and greater reliance on digital transformation and artificial intelligence in the country's future economic model. Regarding Egypt's ongoing IMF program, Madbouly clarified that the reform agenda was created and implemented by the Egyptian government itself, with the IMF acting in a supportive role. He said the presence of the IMF and similar institutions in Egypt serves as a confidence signal to foreign investors and the global financial community, and that the IMF's involvement does not entail new conditions or burdens on citizens. Madbouly also addressed developments in the Future of Egypt agricultural project, which he said is designed to rely on modern, mechanized farming and industrial methods. Unlike traditional high-density agricultural zones in the Nile Delta, the new areas will be less labor-intensive and structured to attract large-scale private sector participation. He said the aim is to preserve agricultural productivity by avoiding the fragmentation of land that has affected other regions. On technical education reform, Madbouly announced that the government is reviewing plans to convert outdated commercial diploma schools into modern technological schools that align with labor market needs. This reform will also involve private sector partnerships and follow successful models such as the WE School for ICT Education. He noted that graduates from current vocational tracks will be eligible to join digital transformation initiatives like the state-supported Digital Pioneers Program. In the health sector, the prime minister confirmed that the second phase of Egypt's universal health insurance scheme will expand to five additional governorates. He added that one densely populated governorate might also be included in this phase, bringing the total number of covered regions to 12. Madbouly said the system's financial viability has been reassessed and extended to ensure it can remain sustainable for up to 50 years. He also spoke about the government's plan to support the local production of infant formula, describing it as a capital-intensive industry that requires significant investment. The state is encouraging private sector participation in this strategic initiative and is ready to act as a partner to ensure long-term success and stability in production.
Al Arabiya
12-05-2025
- Business
- Al Arabiya
Trump heads to Saudi Arabia seeking big investment wins
In this episode of W News Extra, presented by Leigh-Ann Gerrans, Donald Trump's upcoming visit to Saudi Arabia takes center stage, with the former US president expected to push for major Gulf investments to boost domestic manufacturing and job creation. As Trump prepares to meet Saudi Crown Prince Mohammed bin Salman in Riyadh and attend a Gulf summit, the episode also covers a breakthrough US-China agreement slashing tariffs by 115 percent, and Ukrainian President Volodymyr Zelenskyy's challenge to Vladimir Putin for direct talks in Turkey amid renewed ceasefire calls. Plus, Hamas agrees to release US-Israeli hostage Edan Alexander ahead of Trump's Middle East arrival, while debates rage in the UK over the rise of smart cameras and their impact on privacy. Other standout stories include a family using AI to bring a road rage victim's voice into the courtroom and a lighthearted moment as the Pope gets a sandwich named in his honor.
