Egypt plans to balance its national budget by selling Mediterranean resort real estate to Abu Dhabi and receiving a support package from the IMF, despite the loss of Suez Canal revenue due to attacks by Iran-backed Houthi terrorists. The $24 billion Ras al-Hikma deal will play a significant role in boosting the economy.
Key Points
Ras al-Hikma deal is the largest land sale in Egypt's history
Proceeds from the sale will significantly strengthen the Egyptian pound
Import of food is expected to become cheaper before Ramadan
Loss of Suez Canal income due to Red Sea attacks by Houthis impacting the economy
Egypt's response to currency shortages included crackdown on black market trading
Pros
Sale of Ras al-Hikma real estate to Abu Dhabi for $24 billion will balance national budget
IMF's $20 billion support package will further strengthen the economy
Influx of foreign currency will improve currency exchange rates and make imports smoother
Cons
Loss of Suez Canal revenue due to attacks by Iran-backed Houthi terrorists
Concerns about fair compensation for Bedouin tribal residents losing their homes