Egypt allocates Red Sea land to cut public debt
President Al-Sisi issued a decree allocating 26,690 feddans to the finance ministry for debt reduction and sukuk issuance.
Egypt has allocated approximately 26,690 feddans of state-owned land in the Red Sea governorate to the finance ministry. President Abdel Fattah Al-Sisi issued a decree on November 11, 2026, to use this land for reducing public debt and issuing sovereign sukuk. This decree amends a previous one that allowed the land's use solely for sukuk issuance.
Prime Minister Mostafa Madbouly met with Finance Minister Ahmed Kouchouk and other officials to review progress on debt reduction targets. Madbouly emphasized that lowering debt is a top government priority to free up resources for essential services. The Egypt Forum 2026 set a goal to reduce public debt to about 69.5% of GDP by 2030.
The finance minister reported that the budget-sector debt-to-GDP ratio has been decreasing since the 2023/24 fiscal year, falling by approximately 14 percentage points between June 2023 and June 2026. External debt for these bodies was reduced by about 3.9% of GDP in 2025/26. Madbouly directed ministries to create detailed debt reduction plans for presidential review.
Why it mattersThe government is allocating state land to reduce public debt, aiming to lower the debt-to-GDP ratio to 69.5% by 2030.