Egypt to Increase GDP Growth to 5.4%

A factory employee carries cloth in a thread spinning factory in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany
A factory employee carries cloth in a thread spinning factory in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany
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Egypt to Increase GDP Growth to 5.4%

A factory employee carries cloth in a thread spinning factory in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany
A factory employee carries cloth in a thread spinning factory in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany

Egypt’s Minister of Finance Mohamed Maait said that the country aims to reduce the budget deficit to 6.7 percent and increase the GDP growth to 5.4 percent.

On the sidelines of the 2021 International Monetary Fund and World Bank fall meetings, the minister said that the government adopts a financial policy balancing between maintaining financial stability, supporting manufacturing and export activities, and strengthening social protection networks.

During the fiscal year 2020/2021, Egypt posted a gross domestic product growth of 3.3 percent, a primary surplus of 1.45 percent of GDP, and an overall budget deficit of 7.4 percent, according to the minister.

For the current fiscal year, the government targets to achieve a GDP growth of 5.4 percent, a primary surplus of 1.5 percent, and an overall budget deficit of 6.7 percent.

Egypt's government debt to the GDP reached 91 percent at the end of the past year, and the purpose is to reduce it to less than 90 percent during the current fiscal year, Maait added.

In another context, Egypt's oil minister said on Sunday that foreign investments in the sector fell 26.02% to $5.4 billion in the financial year 2020-21, versus $7.3 billion a year earlier.

"The coronavirus crisis led to a slowdown in investments from international oil companies worldwide," Tarek El Molla said in a speech to the Egyptian Petroleum Association.

Molla said that Egypt's arrears to foreign oil firms decreased to $845 million by the end of the financial year 2020-2021, from $850 million a year earlier.



Saudi Arabia Expands Homeownership Eligibility in Government Housing Projects

A project by the Saudi Ministry of Rural Affairs and Housing. (Asharq Al-Awsat)
A project by the Saudi Ministry of Rural Affairs and Housing. (Asharq Al-Awsat)
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Saudi Arabia Expands Homeownership Eligibility in Government Housing Projects

A project by the Saudi Ministry of Rural Affairs and Housing. (Asharq Al-Awsat)
A project by the Saudi Ministry of Rural Affairs and Housing. (Asharq Al-Awsat)

Saudi Arabia’s Cabinet has approved a new decision allowing the Ministry of Municipal and Rural Affairs and Housing to sell residential units within its housing projects to individuals who are not beneficiaries of government housing support. Real estate experts view the move as a strategic shift that boosts the flexibility of public asset management and maximizes the use of available housing stock.

The decision is expected to boost supply, improve market balance, and promote sustainability in the housing sector.

According to Abdulrahman Al-Tawil, Deputy Minister for Residential Supply Stimulus and Real Estate Development, the decision aims to broaden access to homeownership by including new population segments. Families and individuals who do not qualify for housing support will now be able to purchase units or relocate between homes in new suburban developments overseen by the ministry.

Single individuals and those who previously received loans from the Real Estate Development Fund will be eligible to buy homes in projects launched within the past two years. However, non-beneficiaries will purchase units at market rates, while support recipients will continue to receive financial assistance.

Al-Tawil emphasized that each project will initially offer a four-month window of exclusive sales to support beneficiaries before opening to the wider public.

The move is also designed to align housing supply with urban demand. Al-Tawil cited over 100,000 housing units currently available in Riyadh, offering a range of ownership options that address diverse needs.

Real estate appraiser Eng. Ahmed Al-Faqih believes the decision will have a significant impact on the market by strengthening housing supply and supporting price stability.

The entry of the National Housing Company into the private market adds a new, competitive dynamic that developers must consider when pricing their products, he told Asharq Al-Awsat.

This competition, he said, will not only influence pricing but also encourage developers to prioritize quality—an essential goal of Saudi Arabia’s Vision 2030.

Real estate expert Saqr Al-Zahrani also praised the decision. Speaking to Asharq Al-Awsat, he said it addresses the issue of unsold inventory and offers homeownership opportunities to underserved citizens. He highlighted its potential to generate non-oil revenue and support long-term project sustainability without compromising the priority status of current beneficiaries.

Expanding ownership eligibility could help close gaps in the real estate market, especially in cities where ownership remains low, he added, while expecting the decision to encourage innovation in housing development and financing, further stimulating competition between public and private sectors.

On the issue of housing inflation, Al-Zahrani noted that increasing actual supply will reduce speculative activity and promote more disciplined pricing. This is especially critical for middle-income buyers who face volatility in the current market.

Effective implementation of the policy, supported by clear regulations and transparency, will be vital to achieving its intended outcomes, he remarked.