CAIRO - 30 April 2024: The Egyptian government revised its expectations for the total budget deficit in the current fiscal year 2023/2024 to 3.95 percent from previous estimates of 7.7 percent, after securing $12 billion for the General Treasury from the "Ras El Hikma" deal, according to the Egyptian Ministry of Finance, Tuesday.
Additionally, the government raised its projections for achieving a primary surplus to 5.75 percent of the gross domestic product (GDP) in 2023/2024 from previous estimates of 2.5 percent of the GDP, according to the ministry.
The primary surplus is the difference between state revenues and expenditures without considering debt service.
In February, Egypt signed a deal with the Abu Dhabi Developmental Holding Company PJSC (ADQ) - the sovereign wealth fund of the Emirate of Abu Dhabi - to develop the Ras El-Hikma city, with total investments of $35 billion.
The government expects the project to attract investments of up to $150 billion during its development, helping to provide millions of job opportunities and inject liquidity into the Egyptian economy.
Under the deal, Cairo receives $35 billion, including an $11 billion Emirati deposit in the Egyptian Central Bank, in addition to $24 billion to be injected by the United Arab Emirates.
Egypt will receive 35 percent of the profits from the Ras El-Hikma project, and the state will be committed to cash and in-kind compensation for the residents located on the city's lands.
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