Finance Minister Mohamed Maait has expressed Egypt's intention to tap into the expertise and capabilities of the international firm Morgan Stanley. The focus is on bolstering collaboration in protection strategies against fluctuations in commodity prices and innovative financing avenues. These discussions took place during his engagement with Claire Woodman, the CEO of Morgan Stanley for Europe, the Middle East, and Africa, at the World Economic Forum in Riyadh, Saudi Arabia. In the course of their dialogue, Minister Maait highlighted the critical role of structural reforms in fostering stability and economic expansion in Egypt. He noted that Egypt is shouldering considerable financial, economic, and political challenges, exacerbated by the volatile geopolitical climate in the region, particularly concerning Gaza and the Red Sea. Maait remarked on the Ras El-Hekma City development initiative as a testament to the Egyptian economy's capacity to draw significant investment. He pointed to the extensive infrastructure investments designed to support increased production in various economic sectors, notably agriculture and manufacturing. Concurrently, the government is taking strides to bolster the private sector and expand opportunities for sectors deemed a priority and competitive on both regional and global scales, to enhance export incentives. He underscored Egypt's strategic position as a magnet for investment, noting the country's progress in reclaiming its international standing in this domain. The Egyptian economy presents a wealth of opportunities, possessing the necessary potential and resources to drive developmental investments. Minister Maait conveyed optimism about the country's economic and fiscal trajectory, anticipating improved metrics by the end of June. This includes the anticipated collection of roughly $12 billion, equating to half of the proceeds from the Ras El-Hekma City project, destined for the national treasury. He projected an expected budget surplus of about 5.75% of GDP, coupled with a decrease in the overall deficit to nearly 3.95% of GDP. This is in line with efforts to maintain the budget deficit at approximately 89% of GDP, alongside a more than 23% increase in tax revenue. These figures underscore the success of the Finance Ministry's tax policy reform initiatives and its drive to enhance state income through broader automation, effective tax community management, and the refinement of tax and customs administration performance.
