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Ras al-Hekma deal achieves largest surplus in Egypt’s final budget account

The Egyptian government revealed that the final account of the state’s general budget for the fiscal year 2023/2024 has achieved a “large” primary surplus for the first time in years.

Egyptian Finance Minister Ahmed Kouchouk said that the primary surplus in the final account of the state’s general budget for the fiscal year 2023/2024 “reached LE 859 billion due to the Ras al-Hekma deal.

The Egyptian minister confirmed during a meeting by the Planning and Budget Committee in the House of Representatives that “Ras al-Hekma deal made the country achieve a very high primary surplus and made Egypt among the countries with the highest primary surplus.”

The Planning and Budget Committee held a session attended by Kouchouk to review the overall results of the final account of the state’s general budget for the fiscal year 2023/2024, look over the most important observations and review the aggregated results of the final accounts of public economic entities.

Kouchouk explained that the state was expecting to achieve a primary surplus of about 2.5 percent of the GDP, which amounts to approximately LE 296 billion.

Instead, the primary surplus achieved in the final account totaled LE 350 billion without the Ras al-Hekma deal, and amounted to LE 859.6 billion after adding Ras al-Hekma deal at a rate of 6.1 percent of the GDP.

He pointed out that the total deficit in the final budget account reached LE 504 billion after Ras al-Hekma deal and that “the total deficit rate with Ras al-Hekma deal is 3.6 percent and without Ras al-Hekma is about seven percent.”

Egypt signed in February a contract to develop Ras al-Hekma city on the North Coast in an investment partnership with the UAE.

The deal was described by the Egyptian government as “the largest foreign direct investment deal in the country’s history.”

The Ras al-Hekma deal included foreign direct investment worth US$ 35 billion, according to an announcement by the Egyptian government at the time.

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