CAIRO: The International Monetary Fund said it had reached a staff-level agreement with Egypt for a $12 billion three-year funding facility to support a government reform program aimed at plugging a funding gap and rebalancing the currency market.
The deal is subject to approval by the IMF executive committee which is expected to consider Egypt’s request for an Extended Fund Facility (EFF) in the coming weeks.
“Egypt is a strong country with great potential but it has some problems that need to be fixed urgently. The EFF supports the authorities’ comprehensive economic reform program as... approved by the parliament,” Chris Jarvis, the head of the IMF mission in Cairo, said in a statement.
“The program aims to improve the functioning of the foreign exchange markets, bring down the budget deficit and government debt, and to raise growth and create jobs...”
Egypt’s dollar-denominated 2025 bond rose to trade at its highest level since end-Sept 2015 after the IMF deal was announced.
Egypt announced on July 26 it was close to agreeing an IMF lending program worth $12 billion to ease its deficit and restore market stability. Prime Minister Sherif Ismail asked his team to complete talks during a two-week visit by an IMF staff team that arrived in Cairo on July 30.
Thursday’s announcement was the first IMF confirmation of the duration and size of Egypt’s potential funding facility.
Egypt’s economy has been struggling since a mass uprising in 2011 ushered in political instability that drove away tourists and foreign investors, both major earners of foreign currency. Foreign reserves have halved to about $15.5 billion since then.
The dollar shortage has forced Egypt to introduce capital controls that have hit trade and growth, while downward pressure on the pound has mounted on speculation that the central bank will need to devalue for the second time this year.
Speaking at a news conference, Jarvis said the aim of the foreign exchange policy was to end hard currency shortages.
“Moving to a flexible exchange rate regime will strengthen competitiveness, support exports and tourism and attract foreign direct investment. This would foster growth and jobs and reduce financing needs,” Jarvis said in his statement. He did not say if Egypt had committed to easing its exchange rate policy as part of the deal.
The government has already begun implementing its reform program, including plans for a value added tax (VAT) and subsidy cuts. It announced electricity price hikes this week.
Jarvis said the government recognized the need for “quick implementation of economic reforms for Egypt to restore macroeconomic stability and to support strong, sustainable, job-rich growth.”
IMF agrees $12 billion 3-year funding deal with Egypt
IMF agrees $12 billion 3-year funding deal with Egypt
Industry leaders highlight Riyadh’s Metro, infrastructure as investment catalysts
RIYADH: Saudi Arabia’s capital, Riyadh, is experiencing a transformative phase in its real estate sector, with the construction market projected to reach approximately $100 billion in 2025, accompanied by an anticipated annual growth rate of 5.4 percent through 2029.
The Kingdom is simultaneously advancing its data center capacity at an accelerated pace, with an impressive 2.7 GW currently in the pipeline. This expansion underscores the critical role of strategic land and power planning in establishing national infrastructure as a cornerstone of economic growth.
These insights were shared by leading industry experts during JLL’s recent client event in Riyadh, which focused on the city’s macroeconomic landscape and emerging trends across office, residential, retail, hospitality, and pioneering sectors, including AI infrastructure and Transit-Oriented Development.
Saud Al-Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, commented: “Riyadh is positioned at the forefront of Saudi Arabia’s Vision 2030, offering unparalleled opportunities for both investors and developers. National priorities are continuously recalibrated to ensure strategic alignment of projects and foster deeper collaboration with the private sector.”
He added: “Recent regulatory developments, including the introduction of the White Land Tax and the rent freeze, are designed to stabilize the market and are expected to drive renewed focus on delivering premium-quality assets. This dynamic environment, coupled with evolving construction cost considerations in select segments, is fundamentally reshaping the market landscape while accelerating progress toward our national objectives.”
The event further underscored the transformative impact of infrastructure initiatives. Mireille Azzam Vidjen, Head of Consulting for the Middle East and Africa at JLL, highlighted Riyadh’s transit revolution. She detailed the Riyadh Metro, a $22.5 billion investment encompassing 176 kilometers, six lines, and 84 stations, providing extensive geographic coverage, with a depth of 9.8 km per 100 sq. km. This strategic development generates significant TOD opportunities, with properties in proximity potentially commanding a 20-30 percent premium. JLL emphasized the importance of implementing climate-responsive last-mile solutions to enhance mobility and accessibility, particularly given Riyadh’s extreme temperatures.
Gaurav Mathur, Head of Data Centers at JLL, emphasized the rapid expansion of the Kingdom’s AI infrastructure, signaling a critical area for technological investment and innovation.
Focusing on the construction sector, Maroun Deeb, Head of Projects and Development Services, KSA at JLL, explained that the industry is actively navigating complexities such as skilled labor availability, material costs, and supply chain dynamics.
He highlighted the adoption of Building Information Modeling as a key driver for enhancing operational efficiency and project delivery.
