CAIRO: Egypt has taken major steps towards lowering its budget deficit by selling real estate as well as agreeing a support package with the International Monetary Fund, its finance minister said on Sunday.
Egypt’s primary budget surplus will rise to above 3.5% in the fiscal year that will begin on July, finance minister Mohamed Maait told a news conference on Sunday.
The primary surplus does not include interest payments, which in the seven months to end-January accounted for well over half of all expenditure and have kept Egypt deeply in deficit.
The finance ministry last month forecast a primary general budget surplus equal to 2.5% of gross domestic product for the current fiscal 2023/24 year.
Egypt agreed in February to sell the development rights to Ras al-Hikma, a prime Mediterranean resort destination, to Abu Dhabi for $24 billion and expects more than $20 billion from an IMF-led package signed last Wednesday.
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The package includes $3 billion in funding from the World Bank, Maait said.
“The positive part is the Ras al-Hikma deal, a not-small portion of which will enter the general budget in pounds,” Mohamed Maait told reporters. “The total deficit will be less than targeted because of Ras al-Hikma.”
Maait said the budget had been hurt by a drop in Suez Canal and other revenue, while expenditure had surged because of a sliding currency and higher interest rates on Egypt’s debts.
As part of the IMF package, Egypt devalued its currency to around 50 Egyptian pounds to the dollar from 30.85 pounds and raised its key overnight interest rates by 600 basis points.
A chronic shortage of dollars has led to an immense back-up at ports. Since January, Egypt has released $13 billion worth of goods from ports, Maait said.
Maait said the government would continue a programme of budget tightening as well as pursuing further sales of state assets and was aiming to keep the country’s debt at under 90% of gross domestic product.
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Egypt has inked seven memorandums of understanding (MOUs) with global companies for the advancement of renewable energy and green hydrogen ventures in the Suez Canal Economic Zone (SCZONE), as per an official statement.
The MOUs are anticipated to result in investments amounting to $12 billion for the pilot phases and $29 billion for the initial phases, with total investments exceeding $40 billion over the next decade.
The agreements were endorsed in the presence of Egyptian Prime Minister Mostafa Madbouly and involved entities like the General Authority for the Suez Canal Economic Zone, New and Renewable Energy Authority (NREA), The Sovereign Fund of Egypt (TSFE), as well as Egyptian Electricity Transmission Company (EETC).
The partnering international companies include Pash Global (UK), Smartenergy (Switzerland), Gama Construction and Meridiam consortium (France), SK Eco Plant and CSCEC North Africa consortium (South Korea and China), Gila Al Tawakol Electric (Egypt), AmmPower (Canada), and United Energy Group (Hong Kong). Detailed information on project types, capacities, and specific investments remains undisclosed.
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This latest agreement further expands Sabre’s geographic footprint in Africa, following a recent distributor deal with SABRON Tech Ltd for key markets in East Africa.
LONDON and CAIRO – Egypt Sabre Corporation, a leading software and technology provider that powers the global travel industry announced a new alliance with Red Sparrow Tourism Consultancy. The deal will give travel agents across Egypt increased opportunities to grow their businesses with Sabre’s intuitive technology.
Through the agreement, Red Sparrow will be licensed to represent and distribute the Sabre brand to travel agencies across Egypt. This will further amplify Sabre’s growing presence in Africa while giving agents enhanced access to Sabre solutions, including Sabre Red 360, which provides a full spectrum of bookable content through a customizable interface. Through Red Sparrow, Sabre-connected agents will also have access to a localized helpdesk in Egypt.
“We’re excited and proud to be combining Sabre’s advanced technology with our deep market support and expertise,” said Tarek Hefny, Country Manager, Red Sparrow. “With continued focus on further, significant growth for the Egyptian tourist sector, it’s more important than ever that travel agents here have access to the industry-leading solutions they need to enhance offers and experiences for travellers while growing their own revenue.”
“Working collaboratively with our travel partners across the globe is incredibly important to Sabre, and for the growth of the wider travel ecosystem,” said Sean McDonald, Managing Director, EMEA, Agency Solutions. “So, we’re delighted to come together with Red Sparrow to provide travel agents in Egypt with the technology they need to make compelling recommendations and create personalized experiences for their travellers through Sabre’s smart workflows.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor’s degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
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