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Egypt Sees Budget Deficit Narrowing to 5.6% of GDP this Year

This picture taken on August 24, 2022 from the landmark Cairo Tower shows a night-time view of vehicles driving past lit-up billboards along the "October 6" highway running through the Zamalek district (R) of Egypt's capital Cairo to the Agouza district (L) in its twin-city of Giza. (AFP)
This picture taken on August 24, 2022 from the landmark Cairo Tower shows a night-time view of vehicles driving past lit-up billboards along the "October 6" highway running through the Zamalek district (R) of Egypt's capital Cairo to the Agouza district (L) in its twin-city of Giza. (AFP)
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Egypt Sees Budget Deficit Narrowing to 5.6% of GDP this Year

This picture taken on August 24, 2022 from the landmark Cairo Tower shows a night-time view of vehicles driving past lit-up billboards along the "October 6" highway running through the Zamalek district (R) of Egypt's capital Cairo to the Agouza district (L) in its twin-city of Giza. (AFP)
This picture taken on August 24, 2022 from the landmark Cairo Tower shows a night-time view of vehicles driving past lit-up billboards along the "October 6" highway running through the Zamalek district (R) of Egypt's capital Cairo to the Agouza district (L) in its twin-city of Giza. (AFP)

Egypt expects more progress on reducing its budget deficit this year and a foresees a decline in its debt ratio after currency devaluations caused it to rise last year, Finance Minister Mohamed Maait told a news conference on Monday.

The deficit was expected to narrow to 5.6% of gross domestic product (GDP) in the fiscal year that began on July 1, from 6.1% in 2021/22, he forecast. It would fall still further in 2023/24 to 5%.

The budget had a primary surplus of 1.3% last year, its fifth year of such surpluses, he added.

The debt-to-GDP ratio would fall to 82.5% this year from 87.4% last year and 84.6% in 2020/21. Maait had expected the ratio to fall last year, but devaluations in the first half of 2022 had added four percentage points to the total, he said.

The Egyptian pound weakened to 18.76 to the dollar as of June 30 from 15.66 pound on Jan. 19.

Egypt was continuing negotiations with the International Monetary Fund begun in March, Maait said, adding that the fund had not asked Egypt to reduce subsidies on bread as had been reported in some media.

The IMF last month said Cairo still needed to make "decisive progress" on fiscal and structural reform.

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$266 Mln Deal Boosts Liquidity in Saudi Housing Market

One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
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$266 Mln Deal Boosts Liquidity in Saudi Housing Market

One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)

The Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund, has signed a SAR 1 billion ($266.7 million) agreement with Bidaya Finance to buy a mortgage portfolio.
The deal is the largest of its kind, aimed at injecting liquidity into Saudi Arabia’s housing market.
The agreement, signed on Sunday, was attended by Housing Minister Majed Al-Hogail, who also chairs SRC, and Abdulaziz Al-Omair, Chairman of Bidaya Finance.
This move supports SRC’s efforts to grow the mortgage market and expand refinancing options, aligning with Vision 2030’s goal of increasing homeownership among Saudi citizens.
SRC CEO Majeed Al Abduljabbar said the deal will boost liquidity and stabilize the housing finance market, helping more Saudis own homes. He added that it builds on SRC’s plan to partner with key lenders and develop a strong secondary mortgage market.
“This agreement is a pivotal step toward achieving the strategic objectives of the Housing Program by increasing homeownership among citizens,” Abduljabbar noted.
“It also aligns with our strategy to forge strategic partnerships with leading financing institutions, fostering the development of an active secondary market for residential mortgages,” he added.
Bidaya Finance CEO Mahmoud Dahduli called the agreement a step forward in offering innovative financing solutions, enabling more citizens to achieve their housing goals and contributing to Vision 2030’s housing targets.
“This strategic collaboration with SRC reinforces our shared role in offering reliable, innovative financing solutions that empower citizens to realize their housing aspirations, aligning with the Housing Program’s goal of increasing homeownership,” Dahduli said.
Established in 2017 by the Public Investment Fund, SRC aims to make home financing more accessible by providing liquidity to lenders and supporting Saudi Arabia’s housing sector under the national transformation plan, Vision 2030.