The Egyptian government has allocated 112 million square meters of state-owned land in the Red Sea governorate to the Finance Ministry for investment purposes, aiming to reduce the country's public debt. Economist Fakhri al-Fiqi explained that this decision does not involve selling the land or transferring its ownership. Instead, it allows the ministry to grant usufruct rights or utilize the land as an in-kind asset for economic development.
According to Fiqi, the allocation is part of a broader strategy to leverage state assets for economic gain, as enacted by a presidential decree. The decree, published in the Egyptian Gazette on Wednesday, authorizes the Finance Ministry to manage and economically utilize the land through usufruct rights. This approach aims to generate proceeds for servicing the public debt while retaining state ownership.
Fiqi emphasized the importance of distinguishing between allocating land under usufruct rights and selling land to transfer ownership. His remarks addressed concerns about the government's intentions to sell state-owned land to repay public debt. The economist clarified that the measure focuses on managing and utilizing assets through usufruct rights, rather than relinquishing ownership.
The allocated land will be used to reduce public debt and issue sovereign "Sukuk" (Islamic financial certificates). This move is part of the state's efforts to leverage its assets to lower the national debt burden. Egyptian President Abdel Fattah al-Sisi issued the presidential decree allocating the land to the Finance Ministry.
The decision to allocate the land has been in the works for some time, with Fiqi noting that it is not a new development. The allocation was made via a presidential decree, which aimed to utilize state assets for economic gain. The Finance Ministry will manage the land and generate proceeds for debt repayment.
The usufruct rights arrangement allows the Finance Ministry to utilize the land for economic development without transferring ownership. This approach enables the state to retain ownership while generating revenue for debt servicing. The allocated land is expected to contribute to reducing Egypt's public debt burden.
The allocation of the 112 million square meters of land is a strategic move to reduce Egypt's public debt. The government's efforts to leverage state assets for economic gain are ongoing, with a focus on managing and utilizing assets through usufruct rights. Key points include the allocation of land for investment purposes, the use of usufruct rights, and the aim to reduce public debt.
Key points
- The Egyptian government has allocated 112 million square meters of state-owned land in the Red Sea governorate to the Finance Ministry to reduce public debt.
- The allocation is part of a broader strategy to leverage state assets for economic gain, as enacted by a presidential decree.
- The usufruct rights arrangement allows the Finance Ministry to utilize the land for economic development without transferring ownership.
