Questions over Egypt's plan to use Red Sea land to lower debt
Egypt has set aside a large stretch of land on its Red Sea coast to help cut public debt , prompting calls for clarity on how the plan will work. A decree signed by President Abdel Fattah El Sisi, which became public last week, covers state-owned land of about 112 million square metres on the Gulf of Suez. The decree adds “reducing the state's public debt” as a permitted use. Finance Minister…
President Abdel Fattah El Sisi recently decreed a section of Red Sea land to be used for reducing Egypt's public debt, a move that has raised questions about the specifics of the plan. Finance Minister Ahmed Kouchouk has announced a "strategic plan" to develop this land, which covers approximately 112 million square meters along the Gulf of Suez.
The plan could involve partnerships with private companies, offering usage rights, and exchanging investments for existing debts. Kouchouk noted that the funds generated from such transactions would be utilized to improve debt figures and support welfare and public services. However, he did not provide a timeline or estimate for the land's value.
This is not the first time land has been set aside for debt reduction. In June 2025, about 174 million square meters of land at Ras Shukeir were designated for the same purpose. Earlier this year, a local Islamic bond program raised approximately 26.8 billion Egyptian pounds ($502 million) from the sale of about 174 million square meters of land at Ras Shukeir.
The two plots are similar in size to significant land deals Egypt has made in the past, such as the $24 billion development rights deal in February 2024 for about 170 million square meters at Ras El Hekma. Another deal was signed in November 2025, with Qatari Diar agreeing to pay $29.7 billion for about 20 million square meters at Alam El Roum.
Egypt's government has been striving to bring down public debt, which currently stands at 81.9% of GDP. The Egypt Forum 2026 recommendations aim to reduce this to around 69.5% by 2030, and the government has already managed to lower budget-sector debt to 17.85 trillion Egyptian pounds ($328 billion) as of March 2025, with 4.17 trillion pounds ($76.6 billion) owed abroad.
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