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Egyptian billionaire Naguib Sawiris has suggested that the government sell state-owned land along the North Coast and the Red Sea in U.S. dollars to Egyptians and foreign investors, aiming to reduce the country’s rising foreign debt.
The proposal comes as Egypt steps up land-for-currency initiatives to bolster its reserves. In February 2024, the government finalized a $35-billion deal with Abu Dhabi’s ADQ at Ras El Hekma, including $24 billion for coastal land rights. By June, more than 41,000 feddans of Red Sea land had been allocated to support sovereign sukuk aimed at curbing debt.
Sawiris emphasizes private-sector role
Sawiris, whose family has developed resorts and cities along Egypt’s coasts, highlighted the importance of the private sector in driving the economy. “The private sector employs 90 percent of the workforce and owns 89 percent of factories and farms,” he said. He argued that the sector, which has already led growth in the Red Sea, North Coast, and new cities, could contribute more to national development if given additional room to operate.
Even as Egypt’s external debt reached $157 billion at the end of the first quarter of 2025, Sawiris — who oversees gold investment firm La Mancha and luxury developer Ora — remains cautiously optimistic. He predicts GDP growth of about 4 percent in the second half of the year, easing inflation, and a potential Central Bank rate cut of one to four percentage points to encourage investment, stabilize prices, and reduce pressure on the dollar.
IMF scrutiny and policy challenges
Egypt continues to operate under an IMF-backed reform program aimed at stabilizing the economy. While the Fund has praised currency liberalization, it has repeatedly warned about the dominance of state and military-owned companies.
Sawiris’s comments highlight a persistent gap between the government’s stated commitment to private-sector participation and the reality of state-led economic control. “Egypt doesn’t need more loans. We need to unlock the value of what we already have,” he said, pointing to the country’s coastal land as a largely untapped source of foreign currency.
Parliament weighs in on safeguards
Fakhry El-Fiky, head of Parliament’s Planning and Budget Committee, predicted that the dollar could fall below EGP40 this fiscal year, citing debt reduction, a potential credit rating upgrade, and stronger foreign currency inflows from investment and tourism. A key factor is the state’s conversion of Gulf deposits into direct investments, following the Ras El Hekma example.
Historical precedent underscores the need for caution. In 2010, Egypt’s High Administrative Court annulled Talaat Moustafa Group’s Madinaty deal for bypassing public auctions, shaking investor confidence until the contract was restructured. Experts say future land sales should adhere to open auctions, independent valuations, and foreign ownership laws.
Sawiris’s vision for private enterprise
With a net worth of $9.2 billion, Sawiris ranks among Bloomberg’s top 500 billionaires. He earned his wealth in telecommunications before expanding into mining and real estate. Today, through Ora Developers, he manages projects across the Middle East, Africa, and Europe.
As Egypt grapples with record debt and currency shortages, Sawiris’s call to monetize prime land for hard currency introduces a bold, though debated, idea into public discourse. For him, selling land and strengthening private-sector activity presents the clearest path toward economic stability.
