Egypt to use 50% of state-asset sale proceeds to cut debt: govt

Egypt to use 50% of state-asset sale proceeds to cut debt: govt

Egypt's government has announced a strategic plan to allocate 50% of the proceeds from the sale of state-owned assets to reduce the country's national debt. The move, part of a broader economic reform agenda, aims to bolster Egypt's financial stability and attract foreign investment.

The announcement was made by Petroleum and Mineral Resources Minister Karim Badawi during the Africa Down Under Conference in Perth. He emphasized that the government's overhaul of mining regulations and the creation of a new "Economic Authority" with expanded powers are designed to fast-track projects and attract international miners. The Arabian-Nubian Shield, a rich yet underexplored mineral belt, holds significant potential for global investors [1].

Egypt is also implementing a series of reforms to simplify compliance and broaden market participation. The government has eliminated capital gains tax on stock transactions, introducing a low, fixed stamp duty. This shift from a profit-based system to a transaction-based levy seeks to balance enhancing market accessibility and ensuring a steady stream of tax revenue [2].

The new AI strategy unveiled by Egypt in September 2025 aims to establish the country as a regional leader in artificial intelligence. The strategy focuses on leveraging AI to drive social and economic development and improve the quality of life for all citizens [3].

By using a significant portion of the state-asset sale proceeds to reduce debt, Egypt seeks to create a more attractive investment environment. The combination of these reforms, including the simplification of capital market regulations and the promotion of the mining sector, positions Egypt as a competitive destination for foreign investment.

References:
[1] https://medafricatimes.com/41993-egypt-courts-global-miners-with-sweeping-reforms-to-boost-minings-gdp-share.html
[2] https://www.middleeastbriefing.com/news/egypt-eliminates-capital-gains-stock-transactions/
[3] https://techafricanews.com/2025/09/04/egypt-aims-for-ai-leadership-in-the-middle-east-and-africa-with-new-national-strategy/