Questions over Egypt's plan to use Red Sea land to lower debt

Résumé détaillé

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…

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 Ahmed Kouchouk said his ministry was drawing up a “strategic plan to develop the Red Sea area” set aside for debt reduction. In a LinkedIn post, he said the options included partnerships with the private sector, offering usage rights, and “swapping part of the investments against outstanding debts”.

He said returns would be used to improve debt figures and free up money for welfare and public services. But he gave no timetable or estimated value for the land.

Mohamed Fouad, a member of the House of Representatives' economic affairs committee, has filed a formal briefing request to the Speaker, asking how the land will be used to cut debt, what effect that will have on total borrowing, and whether earlier allocations reduced it.

In June 2025, about 174 million square metres of land at Ras Shukeir were set aside for debt reduction and Islamic finance. A local Islamic bond programme raised about 26.8 billion Egyptian pounds ($502 million) in its first sales last year, state media reported.

The two plots are similar in size to the coastal land behind Egypt's largest Gulf investment deals, although they are being used differently.

In February 2024, Abu Dhabi's ADQ agreed to pay $24 billion for the development rights to about 170 million square metres of land at Ras El Hekma on the Mediterranean. It also agreed to convert $11 billion of deposits into investments, and Egypt kept a 35 per cent stake.

In November 2025, property company Qatari Diar signed a deal valued at $29.7 billion to develop about 20 million square metres at Alam El Roum, including $3.5 billion paid in cash for the land.

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