Egypt allocates Red Sea land to lower public debt

Egypt’s finance ministry plans to develop a prime land plot on the Red Sea, saying it is part of a broader strategy to reduce public debt through partnerships with financial institutions and state economic bodies.

The land, which will remain under government ownership, will be used in debt-for-asset arrangements and serve as collateral for sovereign sukuk, the ministry said Thursday in a statement shared with Amwal Al Ghad English. Revenues from the developments will go toward repaying outstanding government debts, easing fiscal pressure and lowering debt servicing costs.

The move is designed to turn underutilised state land into productive, long-term investments in real estate, tourism, and public services. Authorities say the move will also support Egypt’s broader goals of reducing the budget deficit, stimulating economic growth, and increasing investment in health, education, and social protection programmes.

The ministry emphasised that the approach is part of a shift toward asset-based financing solutions that preserve state ownership while generating recurring revenue streams and improving the country’s debt profile.

Attribution: Amwal Al Ghad English
Subediting: Y.Yasser