Egypt: Proposal to Amend Strategy for Dealing with Debt

Egypt’s central bank in Cairo (Reuters)
Egypt’s central bank in Cairo (Reuters)
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Egypt: Proposal to Amend Strategy for Dealing with Debt

Egypt’s central bank in Cairo (Reuters)
Egypt’s central bank in Cairo (Reuters)

A member of the Egyptian parliament’s economic committee revealed a proposal to reduce monetary pressure, by addressing the debt problem, in light of the country’s severe currency crisis.

In exclusive remarks to Asharq Al-Awsat, MP Ahmed Samir said that the proposed strategy included a plan to convert Egyptian debts into investments and projects, through an agreement with the International Monetary Fund and the World Bank.

He explained: “If an agreement is reached with these two institutions to reduce Egyptian debt and transfer part of it to projects and investments, as happens with some other countries, this will reflect positively on the Egyptian credit rating.”

According to the Ministry of Finance’s financial report in September, Egypt spent 391.8 billion pounds on debt service in the first two months of the current fiscal year 2023/2024, with a 160-percent increase over the 149.9 billion pounds spent in the same period of the previous fiscal year.

This widened the budget deficit to 3.2 percent of GDP during the first two months, from 1.4 percent the previous year.

Samir said that Parliament’s economic committee was currently studying amending the capital law, to stimulate transactions on the Egyptian Stock Exchange by attracting new companies and increasing local and foreign offerings.

Despite the rise in Egyptian stock market indices over the past weeks, and the main index recording a new high of 24,300 points, supported by foreign purchases in Thursday’s session, the market capitalization of shares of listed companies amounts to 1.6 trillion pounds.

Moody’s, Fitch, and Standard & Poor's, have lowered Egypt’s credit rating, in light of a record rise in sovereign debt and debt service. In its latest report, Moody’s downgraded Egypt’s rating from B3 to Caa1.

In this context, the Egyptian deputy said: “We are currently comparing the Egyptian Stock Exchange to the Saudi Tadawul... Therefore, we see that the trading volume on the Egyptian Stock Exchange should double... We need more liquidity by offering more companies, and that is by increasing the incentives that we are currently studying.”

Egypt had launched the first version of the Sustainable Development Strategy: Egypt Vision 2030, in 2016, as the basis for the comprehensive development process.

In early 2018, the country decided to update its sustainable development agenda with the participation of all stakeholders from development partners, in order to keep pace with the changes that occurred in the local, regional and global context.

The second version of Egypt’s Vision 2030 focused on explaining how the Egyptian contribution will serve the international agenda and the global context.



Saudi Arabia to Host World Investment Conference on November 25-27

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia to Host World Investment Conference on November 25-27

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

Under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, the World Association of Investment Promotion Agencies (WAIPA) and Invest Saudi will hold the 28th annual World Investment Conference (WIC) in Riyadh from November 25 to 27.

The event will gather global leaders in investment, government, and international organizations to tackle the theme “Harnessing Digital Transformation and Sustainable Growth: Scaling Investment Opportunities”.

On the occasion, Saudi Minister of Investment Khalid Al-Falih said: “Under the wise leadership of Custodian of the Two Holy Mosques King Salaman bin Abdulaziz Al Saud and Crown Prince Mohammed, the Kingdom, driven by its ambitious Vision 2030, has become a premier world investment destination and is experiencing unprecedented growth in overall investment amounts and diversity.”

This year’s World Investment Conference in Riyadh “will be a platform for sharing our nation’s strategic vision with our partners, and an invaluable opportunity to highlight our status as a trusted partner for sustainable economic growth,” he added.

“We look forward to welcoming investment leaders from around the world to forge partnerships that will benefit both the Kingdom and global economies,” he stressed.

Vision 2030 has driven significant economic reforms in Saudi Arabia, attracting substantial foreign investment. Over 28,900 foreign investment licenses have been issued, reflecting the Kingdom's transformation into a major global investment hub.

Key factors contributing to this growth include 100% foreign ownership in specific sectors, streamlined commercial register procedures, simplified visa issuance, and other investor-friendly initiatives that have created a favorable and appealing environment for investors in various sectors, including renewable energy, logistics services, and AI.

The Kingdom's attractive investment landscape has also facilitated the development of a dynamic economy that leads in innovation and growth.

WAIPA Executive Director and CEO Ismail Ersahin said: “WAIPA is excited to bring the 28th WIC to Riyadh, a city that perfectly embodies the future of investment. The conference will provide a crucial platform for Investment Promotion Agencies and investors to discuss emerging opportunities in a rapidly evolving global landscape.”

“We deeply appreciate Saudi Arabia’s vision and leadership, which will ensure that this edition of WIC is an impactful gathering for all participants,” he remarked.

Key highlights of this year’s WIC are a range of conference tracks, such as high-level dialogues with government ministers, insightful sessions on technology, sustainability, and economic cooperation, as well as practical masterclasses for investment professionals, a dedicated entrepreneurship track that will emphasize the transformative role of startups and innovators, and exclusive matchmaking sessions that will facilitate strategic partnerships between investors, SMEs, and potential collaborators.

Participants will also have the opportunity to celebrate the achievements of Investment Promotion Agencies on the Awards Track, honoring innovation and excellence in investment facilitation.

This year’s WIC promises to be a pivotal forum as it aligns with global investment drivers: the disruptive influence of technology and AI, global supply chain resilience, energy transition toward sustainability, and the transformative role of entrepreneurs and startups in reshaping investment landscapes traditionally led by multinational corporations.

Leaders and stakeholders will discuss and explore how these factors are redefining economies and driving forward-looking investment models worldwide.

With its focus on scaling investment opportunities, WIC is designed to equip attendees with the tools, knowledge, and connections necessary to drive meaningful economic impact.