2 days ago
Egypt Moves to Reduce Public Debt Through Strategic Land Utilization
The Egyptian Ministry of Finance has announced that the recent allocation of a significant land area in Ras Shukeir, located in the Red Sea Governorate, aligns with national efforts to issue sovereign sukuk and reduce public debt.
Under Republican Decree No. 303 of 2025, President Abdel Fattah El-Sisi authorized the Ministry to utilize approximately 41,515.55 feddans (or 174.4 million square meters) of state-owned land in the area. This move forms part of a comprehensive financing strategy aimed at supporting the national budget.
In a statement released Thursday, the Ministry clarified that this allocation does not involve any sale of land. Rather, it will be developed and partially used as collateral for sovereign sukuk issuance—providing the government with cost-effective financing options.
The land will remain fully owned by the Egyptian state and under the authority of the Ministry of Finance, alongside other government entities engaged in economic activities. No ownership transfer to private parties is permitted.
The presidential decree specifies that the land must be used strictly for public debt reduction and the issuance of sovereign sukuk, in line with relevant legal and regulatory frameworks. Additionally, the Armed Forces will retain control over any military-designated zones within the allocated area, recognizing their strategic importance.
The Ministry further revealed plans to develop a portion of the land through joint ventures with financial institutions and public economic entities. The objective is to offset part of the existing government debt through shared investments that deliver strong developmental returns.
This initiative is expected to ease the debt burden, lower servicing costs, and unlock the land's potential by transforming it into productive, tourism, service, and real estate projects—ultimately yielding sustainable economic benefits.
The Ministry emphasized that this approach is part of Egypt's broader strategy to strengthen public financial governance, stimulate economic growth, enhance competitiveness, reduce borrowing costs, and expand fiscal space to support social protection and low-income populations.
