Egyptian President Abdel Fattah Al-Sisi has directed the government to prepare a third package of tax relief measures and approved a proposal to introduce tax sukuk aimed at reducing the state’s financing needs and lowering debt-servicing costs, according to the presidency.
Al-Sisi reviewed Egypt’s fiscal and economic performance during a meeting in New Alamein with Prime Minister Mostafa Madbouly and Minister of Finance Ahmed Kouchouk.
The meeting also discussed Egypt’s strategy for hedging against fluctuations in global oil prices during the 2025/26 and 2026/27 fiscal years, as well as progress in implementing measures to simplify property tax procedures.
Kouchouk said the government is introducing a mobile application for property taxes, while a similar digital platform for real estate transaction taxes is expected to be launched within days.
The presidency said Al-Sisi approved a proposal to issue tax sukuk that would be financed by taxpayers and could be offset against their future tax liabilities. The sukuk would offer what the presidency described as an attractive return, helping to reduce the government’s financing requirements and, consequently, debt-servicing costs.
Kouchouk also presented the preliminary final fiscal results for the 2025/26 fiscal year. He said Egypt’s real economic growth reached 5.2% during the first nine months of the year, supported by improvements across several economic and fiscal indicators.
These included a decline in the external debt of budget-sector entities, an expansion of the tax base through simplified and more automated procedures, stronger non-tax revenues, and improved performance in Egypt’s capital markets.
The finance minister also pointed to lower costs of insuring Egyptian sovereign debt against default and a decline in yields on government securities.
Kouchouk said the laws comprising the second package of tax relief measures had entered into force following presidential ratification. He said the reforms are designed to simplify tax procedures, reduce burdens on businesses, and enhance Egypt’s investment climate.
Al-Sisi instructed the government to continue modernising the tax system, improve services for taxpayers and investors, and introduce additional incentives, directing the preparation of a third tax relief package.
According to the presidency, the government has reduced the debt of budget-sector entities as a share of gross domestic product by around 13.2 percentage points over the past two years and plans to continue lowering the ratio to create additional fiscal space to support citizens and investors.
The meeting also reviewed proposed initiatives to help industrial companies transition to solar energy and promote the conversion of solid waste into alternative fuels.
Separately, Al-Sisi ordered the immediate formation of a government committee to inspect tourism developments along Egypt’s coastline and ensure public access to beaches. He stressed that no structures or construction works should be permitted within 200 metres of the shoreline without prior approval from the relevant state authorities.
The president also directed authorities to inspect real estate developments nationwide to ensure developers deliver units to buyers on schedule, comply with contractual obligations, and complete the required infrastructure, stressing that violations should be met with legal accountability.
