Egypt's Red Sea land deal

Economic experts praised the decision to allocate 26,700 feddans in the Red Sea Governorate—equivalent to 112 million square metres—as collateral for issuing long-term usufruct sukuk, with the proceeds to be used to reduce public debt. One expert estimated the sukuk’s value at around 1.7 trillion Egyptian pounds and said the move could reduce domestic debt by between 7 and 15 percent, while ownership of the land would remain with the state and the right to use it could be granted for up to 30 years. Experts differed on whether the decision was linked to the “Grand Swap” proposal, but said it develops the idea by placing asset management in the hands of the Ministry of Finance and using sukuk, rather than transferring ownership to the Central Bank.

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