Foreign direct investment (FDI) inflows in Egypt’s public debt instruments reached up to $29 billion by the end of May, according to Minister of Finance Mohamed Maait.

In a press conference held on Tuesday, Maait noted that all financing solutions are on the table during the coming FY2021/2022, which starts in July.

Yet, the minister stressed that the government will not issue a second green bonds offer during FY2021/22, as such kind of instruments are utilised to finance only green projects.

He clarified that Egypt seeks to diversify its financing resources without increasing its debt level.

Accordingly, the finance ministry will take the required procedures regarding offering the first issuance of the sovereign Islamic bonds (sukuk) as soon as President Abdel-Fattah El-Sisi ratifies the sovereign Islamic bonds bill so that it may be published in the official gazette.

The parliament — House of Representatives — approved on Sunday the sovereign bonds (sukuk) bill, which is waiting on the final vote of a two thirds majority of MPs.

“The anticipated sovereign Islamic bonds issuance aims to expand the investor base and increase productive projects in the country,” Maait explained.

He also noted that Egypt eyes issuing sustainable development bonds, the first of their kind in Middle East, Africa, and Asia.

Maait also emphasised that the political leadership is keen on easing all obstacles the investors are likely to face, through which the private sector can play a greater role in the country’s development projects.

During the press conference, Maait said that Egypt’s President Abdel-Fattah El-Sisi has managed to transform the challenges the country is countering into promising developmental opportunities that have been contributing to building the new Egypt.

He added that President El-Sisi has scored unprecedented achievements across all life aspects with an aim of improving citizens’ life standards and uplifting the quality of the services they receive.

“Egypt’s economic reform programme, that the president has adopted, earned the national economy a great deal of flexibility to counter both internal and external shocks. It also helped in providing a financial space that is required to enhance spending objects, particularly on the education and health sectors, as well as expanding the social protection umbrella. It also contributed to launching the mega project of Egypt’s rural development, which is the biggest in the world,” Maait explained.

On Egypt’s relation with the International Monetary Fund (IMF), the minister noted that the joint cooperation programmes are continuous in the field of technical assistance.

ON 25 May, the IMF announced the completion of Egypt’s $5.2 billion stand-by agreement (SBA) programme, which paves the way for Egypt to receive the third tranche of the programme’s loan with an amount of $1.6 billion.

The IMF’s third and final review on the SBA loan is expected to be approved by its executive board during June.