Egypt Approves ”Tax Sukuk” Issuance to Ease Debt Burden, Records 5.2% Real Growth in FY 2025/2026
The Egyptian Presidency announced on Monday that President Abdel Fattah El-Sisi has approved a proposal to issue "tax sukuk" (Islamic bonds). These innovative financial instruments will be funded by taxpayers and subsequently deducted from their future tax liabilities, offering a favorable and appropriate yield. This strategic move is designed to reduce the state's financing requirements and lower the overall cost of debt service.
The announcement came during a meeting held in New Alamein City, where President El-Sisi met with Prime Minister Mostafa Madbouly and Minister of Finance Ahmed Kouchouk.
Key Economic and Financial Updates
During the meeting, the Minister of Finance presented the final financial performance for the fiscal year 2025/2026, alongside crucial budgetary and economic indicators.
Initiative / IndicatorKey Details
Real Economic GrowthReached 5.2% during the first nine months of FY 2025/2026.
Oil Price HedgingReviewed hedging strategies against global oil price fluctuations for FY 2025/2026 and 2026/2027.
Real Estate Tax FacilitationsLaunch of a first-of-its-kind mobile app for real estate taxes; a similar app for real estate transaction taxes will launch soon.
External DebtSuccessful reduction in the external debt burden of state budget entities.
Tax Base ExpansionAchieved through the simplification and automation of procedures, alongside a boost in non-tax revenues.
Market Performance and Risk Mitigation
Minister Kouchouk emphasized the broad improvement across most economic and financial performance indicators over the past year.
"The performance of capital markets and the Egyptian Exchange (EGX) has witnessed substantial and notable improvement. Furthermore, there has been a tangible decline in the cost of insuring against default risks (Credit Default Swaps) and a favorable shift in yields on Egyptian sovereign bonds," Kouchouk added.
The upcoming launch of the real estate transaction tax application is expected to further streamline tax collection and enhance the ease of doing business, reflecting the government's ongoing commitment to digital transformation and financial governance.