The Egyptian government defended “allocating land in the Red Sea to repay debts,” stressing that the decision comes “as part of a strategic plan to develop the region and attract investment flows,” coinciding with the submission of a briefing request to the Egyptian House of Representatives that stressed the importance of disclosing “the plan’s returns,” and doubts about its ability to deal with the complexities of the public debt file.
Last Wednesday, Egyptian President Abdel Fattah El-Sisi issued a decision allowing the Ministry of Finance to use 26.7 thousand acres in the Red Sea Governorate as a guarantee to issue bonds for long-term usufruct, in preparation for offering these lands for investments, which will reflect positively on general economic indicators and contribute to reducing debt.
A number of economists asked on social media about the real market value of these lands? What is the amount of debt that will be settled or reduced in exchange for its exploitation? Are there clear and announced numbers before the decision is made and after its implementation?
They pointed out that “issuing sukuks provides financing, but it is linked to financial obligations, usufruct rights, and returns, and therefore the full cost of this tool must be clarified, and not just announcing the provision of financing.”
On the other hand, economists confirmed in previous statements to Asharq Al-Awsat that the government’s latest plan is the “optimal solution” to exploit state lands to solve the debt crisis, as the sukuk rely on a usufruct system for a period that may reach 30 years, without dispensing with the lands or completely transferring their ownership, in a way that preserves the right of future generations and contributes to reducing internal debt from 7 to 15 percent.
After the decision sparked controversy, the Ministry of Finance explained that there is “a strategic plan to develop the Red Sea region, to attract new investment flows that provide permanent revenues for the state,” and that there are “various alternatives to achieve the highest economic and development returns for the state through optimal planning for this region.”
The Ministry of Finance announced, in a press statement on Friday, that it is working on “a strategy to manage assets and liabilities through activities that ensure optimal exploitation with the greatest economic return for the state,” and that “the state’s lands in the Red Sea allocated to reduce debt will be directed to investment and partnerships.” Moreover, “these assets will be utilized through offering usufruct rights or establishing investment projects in partnership with the private sector, exchanging part of the investments for outstanding debts, and directing the economic returns of these investments to reduce government debt and debt service.”
According to the ministry’s statement, it aims to increase fiscal space to increase spending on human development, social protection, improving services, and other citizen priorities, stressing that “the debt management strategy contributed to reducing government debt from 96 percent to 81 percent of the gross domestic product within 3 years, while achieving initial budget surpluses.”
It explained that it is working to “take advantage of exceptional returns through major investment deals to accelerate the process of reducing debt rates.”
In the opinion of Dr. Tariq Fahmy, professor of political science at Cairo University, “The political dimension of the government’s proposal has raised controversy and questions.” He told Asharq Al-Awsat, “The Ministry of Finance’s statement tried to explain the reasons for the decision and its economic context, but there is an absent political dimension, as the government should have taken into account a set of determinants, including transparency and frankness, and not deal with a policy of reaction, as the details of the decision should have been announced, presented to public opinion, and Parliament should have participated in making the decision.”
Fahmy believes that “the priorities for spending the proceeds from this offering must be determined and announced, including directing some of it to pay off debts or other things, and the participation of public opinion in these discussions.”
Egyptian external debt was estimated at about $164.8 billion by the end of the first quarter of 2026, while domestic debt recorded 11.057 trillion pounds (about $206 billion), according to the Egyptian Ministry of Planning.
On Friday, a member of the House of Representatives (the main chamber of Parliament), Dr. Mohamed Fouad, submitted a briefing request addressed to the Minister of Finance, regarding the executive position of the decisions to allocate Red Sea lands for issuing sovereign bonds and reducing public debt, and the extent to which the implemented arrangements are compatible with financial legislation and their actual impact on the state’s debt.
Economist Dr. Wael Al-Nahhas believes that the decision to allocate the Red Sea lands theoretically aims to reduce public debt and open new financing paths. He told Asharq Al-Awsat that “the idea in general depends on financing the budget deficit, through the Ministry of Finance issuing instruments under which it obtains financing from international institutions as an alternative to direct borrowing.”
He added: “The crisis is the lack of clarity about the economic dimension of what was proposed. The nature of the projects to be established in the Red Sea, the method of using these lands, and are there feasibility studies or not have not been announced?”
French Foreign Ministry spokesman Pascal Confavro said on Friday that Paris will ask the European Commission to study the circumstances of Algeria’s non-compliance with the association agreement concluded with the European Union. Diplomats told Reuters last October that Algeria imposed an almost comprehensive ban on French imports in late July, and last month they also learned of instructions from Algeria to suspend shipments of urea to France, which is a basic and very important material in many industries. Confafro said in a press conference that the Association Agreement with the European Union “stipulates the possibility of taking appropriate measures in the event that compliance is not respected.” He added, explaining: “We ask the Commission to immediately study the conditions for activating these measures.”
This French step comes in light of the escalation of economic tensions between the two countries, as Paris seeks to activate the legal mechanisms available within the European framework. In this context, Confavro pointed out that the agreement concluded between the two sides includes clear texts that allow for appropriate measures to be taken in the event of non-compliance with the agreed-upon standards being proven.
Informed sources say that the Algerian authorities have taken strict measures against imports coming from France since the end of last July. These sources described the measures as amounting to an almost comprehensive ban on French products. Which raised great concern in economic circles in Paris.
The Algerian restrictions were not limited to general imports only, but also included other vital sectors, according to what was reported by diplomatic sources. Reports also revealed that there were official instructions issued in Algeria requiring the suspension of the export of some materials destined for French markets.
The Association Agreement between Algeria and the European Union has been the legal framework governing trade exchange and economic cooperation for many years. The agreement includes provisions related to customs tariffs and facilitating the passage of goods, which France believes is subject to several violations, requiring intervention by the executive bodies in Brussels.
Tunisian Interior Minister Khaled Al-Nouri said today, Friday, in a plenary session in front of parliament in both chambers, that the authorities have deported more than ten thousand irregular immigrants from January 1 to October 31, according to what the German News Agency reported.
The minister added that ten thousand and 254 immigrants were deported to their countries of origin, highlighting that the number is likely to increase during the coming period. It is not clear whether the number includes the total number of deportees, including those forcibly deported, as well as those who left as part of the voluntary return programme, supported by the International Organization for Migration and foreign donor countries.
The Tunisian Ministry of Foreign Affairs reported two days ago that more than six thousand returned to their countries this year, as part of the voluntary return program, which includes opportunities for economic and social reintegration in the countries of origin. According to the Tunisian authorities and the International Organization for Migration, since its launch in 2022, more than 26,300 migrants have benefited from this programme, most of them from sub-Saharan African countries.
Minister Al-Nouri also explained that the ministry works according to a participatory approach, in coordination with the ministries of National Defense and Foreign Affairs, and through cooperation with national and international organizations. He said that the military units arrested more than 1,500 migrants from sub-Saharan African countries, during operations to confront crimes of terrorism, smuggling, and cross-border crimes. It also arrested 1,564 migrants while securing mountainous areas and land and sea borders. This outcome includes the period from September 2025 to the end of September 2026.
The minister added that efforts are continuing to place an earthen berm along the entire eastern border strip, with the completion of a parallel trench extending along a length of 95 kilometers, with the aim of enhancing border security and confronting infiltration and smuggling operations.
Tunisia is working to strengthen the electronic surveillance system on its borders, through partnerships with countries such as Germany, the United States, Italy, and the European Union. There is no accurate data available on the total number of irregular migrants in Tunisia. But the Ministry of Foreign Affairs stated, on Wednesday, that more than six thousand irregular immigrants returned to their countries this year as part of the voluntary repatriation program, which is supported by the International Organization for Migration and donor countries, out of 26 thousand and 308 immigrants who left since the launch of the program in 2022.
In recent years, the coasts of Tunisia have represented a launching pad for boats of irregular migrants, most of whom arrive from sub-Saharan African countries, in search of better life opportunities in the countries of the northern bank of the Mediterranean. The flows across the land borders with Libya and Algeria have led to tensions with local residents, due to complaints of declining security and escalating crime.
