Egypt Achieves Primary Budget Surplus Through Land Sale to UAE
In a press conference, Egypt’s finance minister, Ahmed Kouchouk, announced that the country achieved a primary budget surplus of 6.1 percent in the fiscal year 2023/24. This surplus was boosted by a significant sale of coastal land to the UAE.
Landmark Deal with UAE Leads to Record Investment
The UAE, led by Abu Dhabi’s sovereign wealth fund ADQ, signed a historic agreement to invest $35 billion in Ras El-Hekma, a Mediterranean region located 350 km northwest of Cairo. This deal marks the largest foreign direct investment in Egypt’s history.
Focus on Tax Revenue and Citizen Services
Despite no new taxes being imposed, tax revenues increased by 30 percent year on year for the financial year 2023/24. This aligns with the International Monetary Fund’s goal for Egypt to boost tax revenue in its 2025/26 budget.
Commitment to Citizen Welfare and Economic Growth
Finance Minister Kouchouk emphasized the importance of improving services for citizens and maximizing resources for human development. He highlighted increased spending on education, health, and social protection, with a focus on creating financial space for essential areas.
Challenges and Opportunities for Economic Reforms
While acknowledging a decline in public investments, Kouchouk stressed the need to increase private sector contributions to economic activity. Despite global and regional economic challenges, Egypt’s economic reforms have begun to yield positive results, surpassing budget estimates and targets.