Egypt is considering the issuance of bonds denominated in Emirati dirhams, Indian rupees, and Hong Kong dollars for the first time. This move is part of the strategy of the country’s Ministry of Finance to diversify its financing options by targeting multiple markets, investors, and financial tools.
During the Asian Financial Forum in Hong Kong, Egyptian Minister of Finance Dr. Mohamed Maait revealed that discussions are underway with Christopher Hui, Hong Kong’s secretary for Financial Services and the Treasury, regarding the possibility of issuing bonds in Hong Kong dollars.
Diversifying Egypt’s debt portfolio
Minister Maait highlighted that issuing bonds in different currencies and markets helps diversify Egypt’s debt portfolio and attracts global investors at lower financing costs. He also mentioned speaking to the Emirates News Agency (WAM), the successful issuance of green bonds worth $750 million and sovereign sukuk worth $1.5 billion.
Minister Maait emphasized the Egyptian government’s commitment to enhancing cooperation with the UAE, particularly in taxation, economics, finance, and investment across all sectors. The Ministry of Finance is dedicated to removing any tax or customs obstacles that Emirati businesses may encounter in Egypt. This effort aims to encourage Emirati entrepreneurs to expand their businesses, increase investment, enhance productivity, and take advantage of the competitive opportunities available.
Emirati investments in Egypt
Regarding Emirati investments in Egypt, Minister Maait stated that more than 1,700 UAE companies have invested approximately $29 billion (AED106.5 billion) in various sectors. These sectors include wholesale and retail, transportation, storage, logistics services, finance, insurance, information and communication technology, real estate, construction, tourism, agriculture, and food security.
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