Sisi Allocates 174M sqm of State Land to Support Debt Reduction and Sovereign Sukuk Plans
Egyptian President Abdel Fattah El-Sisi has issued a decree assigning 174 million square meters of state-owned land in the Red Sea Governorate to the Ministry of Finance, as part of ongoing efforts to manage public debt and fund sovereign sukuk issuance.
The decision, published in the Official Gazette on Tuesday, comes amid a broader government strategy to enhance debt sustainability. According to data reviewed by Al Arabiya Business, Egypt's external debt declined by $111 million in Q4 2024, settling at $155.09 billion by year-end.
Prime Minister Mostafa Madbouly has previously emphasized Egypt’s commitment to responsible borrowing, noting that recent bond issuances are designed to extend debt maturity timelines. These measures have brought the debt-to-GDP ratio back to safe levels, with a targeted annual reduction in external debt ranging from $1.5 to $2 billion.
This land allocation follows a significant agreement in 2023 in which Egypt sold 170 million square meters in Ras El Hekma to the UAE for $24 billion. The deal also included the conversion of $11 billion in Emirati debt into direct local investments.
Currently, Egypt is working to convert Gulf deposits at the Central Bank into long-term investments, reinforcing its strategic shift toward sustainable debt management.