Cairo plans economic independence as IMF program nears end

Egypt’s current $8 billion program with the IMF began as a $3 billion agreement in late 2022 and was expanded by $5 billion in March 2024. Reuters/File
Egypt’s current $8 billion program with the IMF began as a $3 billion agreement in late 2022 and was expanded by $5 billion in March 2024. Reuters/File
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Updated 22 May 2025
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Cairo plans economic independence as IMF program nears end

Cairo plans economic independence as IMF program nears end
  • PM said government is developing a long-term national economic strategy that will extend to 2030
  • IMF continues to stress the importance of accelerating structural reforms and managing debt levels

RIYADH: Egypt is preparing to transition away from its current economic reform program with the International Monetary Fund, which is scheduled to conclude by late 2026 or early 2027, according to the country’s prime minister.  

Speaking during his weekly press conference, Mostafa Madbouly stated that the government is developing a long-term national economic strategy that will extend to 2030 and focus on sustaining growth without relying on international institutions, according to an official release.  

The comments come as Egypt attempts to stabilize an economy that has struggled with record inflation, a depreciating currency, and mounting debt. Over the past few years, authorities have pushed through reforms to unlock external funding, including a major IMF deal, Gulf-backed investments, and a record sale of state assets. 

In a release on its official social media handle, the Egyptian Cabinet quoted the prime minister as saying: “We are aiming to develop a national program for the Egyptian state without relying on other international institutions. This will be linked to submitting, for the first time next year, a three-year budget.” 




Egypt’s Prime Miister Mostafa Madbouly speaks during a weekly press conference in Cairo. Facebook/Egyptian Cabinet

In response to a question about the government’s vision beyond the current IMF program and its efforts to preserve the gains reflected in recent positive economic indicators, the release added: “Madbouly confirmed that the government is drafting a detailed plan extending to 2030. This reflects a broader outlook beyond the IMF program, which ends by late 2026 or early 2027.” 

Egypt’s current $8 billion program with the IMF began as a $3 billion agreement in late 2022 and was expanded by $5 billion in March 2024.   

The deal includes major reforms such as currency devaluation, sharp interest rate hikes, tighter fiscal policy, and privatization of state-owned assets. 

So far, Egypt has received about $3.3 billion, with a fifth program review conducted in early May 2025. 

The IMF continues to stress the importance of accelerating structural reforms and managing debt levels.  

In the release, Madbouly emphasized that the government is prioritizing macroeconomic stability and social development.   

He pointed to the growing importance of social support programs, saying they would continue to expand annually.   




Egypt’s Prime Miister Mostafa Madbouly said the government is drafting a detailed plan extending to 2030. Facebook/Egyptian Cabinet

He also underlined the importance of technological advancement, industrial development, and greater reliance on digital transformation and artificial intelligence in the country’s future economic model.  

Regarding Egypt’s ongoing IMF program, Madbouly clarified that the reform agenda was created and implemented by the Egyptian government itself, with the IMF acting in a supportive role.   

He said the presence of the IMF and similar institutions in Egypt serves as a confidence signal to foreign investors and the global financial community, and that the IMF’s involvement does not entail new conditions or burdens on citizens.  

Madbouly also addressed developments in the Future of Egypt agricultural project, which he said is designed to rely on modern, mechanized farming and industrial methods.   

Unlike traditional high-density agricultural zones in the Nile Delta, the new areas will be less labor-intensive and structured to attract large-scale private sector participation.   

He said the aim is to preserve agricultural productivity by avoiding the fragmentation of land that has affected other regions.  

On technical education reform, Madbouly announced that the government is reviewing plans to convert outdated commercial diploma schools into modern technological schools that align with labor market needs.   




Egypt is encouraging private sector participation in the strategic initiative. Facebook/Egyptian Cabinet

This reform will also involve private sector partnerships and follow successful models such as the WE School for ICT Education.   

He noted that graduates from current vocational tracks will be eligible to join digital transformation initiatives like the state-supported Digital Pioneers Program.  

In the health sector, the prime minister confirmed that the second phase of Egypt’s universal health insurance scheme will expand to five additional governorates.   

He added that one densely populated governorate might also be included in this phase, bringing the total number of covered regions to 12.   

Madbouly said the system’s financial viability has been reassessed and extended to ensure it can remain sustainable for up to 50 years.  

He also spoke about the government’s plan to support the local production of infant formula, describing it as a capital-intensive industry that requires significant investment.   

The state is encouraging private sector participation in this strategic initiative and is ready to act as a partner to ensure long-term success and stability in production.  


Saudi Aramco prices three-part bond sale at $5bn

Saudi Aramco prices three-part bond sale at $5bn
Updated 50 sec ago
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Saudi Aramco prices three-part bond sale at $5bn

Saudi Aramco prices three-part bond sale at $5bn

RIYADH: Saudi Aramco has priced its dollar-denominated 3-part bonds at $5 billion and set spread for them, fixed income news service IFR reported on Tuesday.
Aramco priced its five-year debt sale at $1.5 billion with spread set at 80 basis points over US Treasuries, tighter than 115 bps over the same benchmark released earlier in the day.
Meanwhile, the 10-year portion spread was set at 95 bps with a price of $1.25 billion and its 30-year portion spread was set at 155 bps with a price of $2.25 billion, IFR said. The spread was over the same benchmark tightened from 130 and 185 bps.
The proceeds from each issue of bonds will be used by Saudi Aramco for general corporate purposes, the company said in a bourse filing.
Before the pricing was announced, the debt deal was expected to be benchmark-sized, which is usually considered to be at least $500 million.
Earlier this month, Aramco reported a 4.6 percent drop in first-quarter profits, citing lower sales and higher operating costs as economic uncertainty hit crude markets.
Reuters reported last week that the oil giant is exploring potential asset sales to release funds as it pursues international expansion and weathers the impact of lower crude prices.
The company last turned to global debt markets in July when it raised $6 billion from a three-tranche bond sale.
Saudi Arabia, which is seeking funds to invest in new industries and wean its economy away from oil under its Vision 2030 plan, has long relied on Saudi Aramco to support economic growth.
Other Gulf issuers have tapped debt markets in recent months, braving a market turmoil caused by US President Donald Trump’s tariff policies.
They include Saudi Arabia’s $925 billion sovereign wealth fund and Abu Dhabi’s renewable energy firm Masdar, which last week raised $1 billion with a green bond. (Reporting by Hadeel Al Sayegh and Federico Maccioni in Dubai, Mohammad Edrees in Bangalore; Additional reporting by Pushkala Aripaka; Editing by Kirsten Donovan, Barbara Lewis, David Evans and Mark Porter)


New currency in the works, says Syrian economy minister

New currency in the works, says Syrian economy minister
Updated 8 min 56 sec ago
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New currency in the works, says Syrian economy minister

New currency in the works, says Syrian economy minister
  • Syria is striving to become an open economy and attract foreign investment

DUBAI: Syrian Economy Minister Mohammad Nidal Al-Shaar has said his country is working on developing a new currency but will not make any hasty decisions.

Speaking at the Arab Media Summit on Wednesday, Al-Shaar said the new Syrian government was “dealing with this calmly and patiently” and pointed to the economy’s flaws under Bashar Assad’s regime.

“The regime had different channels to pay salaries, one was through royalties that were imposed on traders and the other was through captagon production. When the regime fell, these stopped so there is a shortage in liquidity currently,” he explained.

Liquidity was the main challenge faced by Syria’s economy, he added, as the previous regime had retrieved most of the country’s liquid assets from overseas before it fell.

“We are working on retrieving our funds from abroad in cash; unfortunately the regime was able to retrieve most of it but something is better than nothing,” he said.

Earlier this year, the UAE invested $800 million to develop the Syrian port of Tartous after the US lifted sanctions.

Al-Shaar said Syria was striving to become an open economy and attract foreign investment but was being selective to avoid creating economic chaos.

“Brotherly countries of the Middle East are all looking forward to protecting Syria from chaos, the Syrian people are tired of (it) and cannot bear any more,” he added.


Housing support opens to Saudis aged 20 in major policy shift

Housing support opens to Saudis aged 20 in major policy shift
Updated 28 min 13 sec ago
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Housing support opens to Saudis aged 20 in major policy shift

Housing support opens to Saudis aged 20 in major policy shift

JEDDAH: In a significant move to broaden access to homeownership, Saudi Arabia has reduced the minimum age for housing support eligibility from 25 to 20.

The policy shift is designed to accelerate homeownership among younger citizens and aligns with the Kingdom’s broader economic and social development goals.

Announcing the update on social media platform X, Minister of Municipal, Rural Affairs and Housing Majid bin Abdullah Al-Hogail expressed his gratitude to King Salman and Crown Prince Mohammed bin Salman for endorsing the changes.

“This step will contribute to enabling more families to benefit from diverse housing and financing options, in line with the goals of the Housing Program and Saudi Vision 2030 to raise the homeownership rate to 70 percent,” the minister said.

The reform marks a continued commitment by Saudi Arabia to expand the reach and impact of the Saudi Housing Program, or Sakani, a key initiative driving social welfare and economic growth. The program was recently lauded by the International Monetary Fund in its September Article IV Consultation report, which cited notable accomplishments including a rise in the homeownership rate to approximately 64 percent, a 90 percent satisfaction rate among beneficiaries, and a wide variety of housing options.

According to the Saudi Press Agency, Al-Hogail stated: “The move reflects the leadership’s continued commitment to strengthening the Kingdom’s housing sector and enabling more citizens to own their first homes with ease and flexibility.”

He added that the updated regulations would offer a wider array of options tailored to the needs of different Saudi households.

One of the landmark reforms includes removing the financial dependency requirement previously applied to wives and divorced mothers, ensuring equal access to housing support regardless of gender.

The eligibility period for divorced women has been also revised, with details to be clarified in forthcoming implementing regulations. Previously, divorced mothers were subject to a two-year waiting period before qualifying for support.

Another notable change reduces the mandatory holding period for housing support assets—from 10 years to five—allowing beneficiaries to transfer or sell their supported assets more quickly. This is intended to provide greater flexibility and reflect the changing economic and social landscape of Saudi families.

The amendments also include enhanced accountability measures. Stricter penalties have been introduced for submitting false information, and authorities will now be able to reclaim any type of housing subsidy—including financial aid, residential units, or land—if an applicant is found to have provided misleading data.

Citizens will be able to apply under the new criteria once regulatory procedures are finalized and officially announced.


Saudi carrier flyadeal to start flights to Syria, CEO says

Saudi carrier flyadeal to start flights to Syria, CEO says
Updated 22 min 35 sec ago
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Saudi carrier flyadeal to start flights to Syria, CEO says

Saudi carrier flyadeal to start flights to Syria, CEO says
  • Many airlines pulled out of Syria during its 14-year civil war

MANILA: Saudi budget carrier flyadeal could start flying to Syria as early as July, CEO Steven Greenway said on Wednesday, joining a handful of foreign airlines introducing or resuming flights to the country as sanctions against it are scaled back.
“We got approvals last week to fly to Syria ... We’re getting ready to hopefully launch that in July,” Greenway told Reuters in Manila, where he announced a deal to lease two jets from Philippine budget airline Cebu Pacific.
Many airlines pulled out of Syria during its 14-year civil war. International flights also stopped for a period after rebels toppled former President Bashar Assad in December 2024, but then resumed with services currently offered by Qatar Airways, Turkish Airlines and Royal Jordanian as well as Syrian carriers.
UAE-based FlyDubai has said it will resume services from June.
US President Donald Trump’s administration last week issued orders effectively lifting sanctions on Syria. Trump said he did so at the behest of Saudi Arabia’s crown prince.
EU foreign ministers also agreed last week to lift economic sanctions on Syria. 


PIF’s HUMAIN to launch $10bn AI fund in global tech push

PIF’s HUMAIN to launch $10bn AI fund in global tech push
Updated 45 min 38 sec ago
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PIF’s HUMAIN to launch $10bn AI fund in global tech push

PIF’s HUMAIN to launch $10bn AI fund in global tech push
  • Kingdom targets 7 percent of global model training by 2030

RIYADH: HUMAIN, Saudi Arabia’s artificial intelligence startup backed by the Public Investment Fund, is set to launch a $10 billion venture capital fund this summer as part of the Kingdom’s ambitious push to become a global AI hub, the company’s CEO has revealed.

In an interview with the Financial Times, CEO Tareq Amin said the new fund—HUMAIN Ventures—will target startups across the US, Europe, and parts of Asia, leveraging Saudi Arabia’s financial strength to assert influence in the rapidly evolving AI industry.

The initiative aligns with projections from the Saudi Data and Artificial Intelligence Authority, which estimate that AI will contribute $15.6 trillion to the global economy by 2030 and create 98 million jobs by 2025.

HUMAIN’s expansion strategy includes establishing 1.9 gigawatts of data center capacity by 2030, with plans to scale up to 6.6GW within four years.

“HUMAIN is seeking to use Saudi Arabia’s financial might to gain a central role in almost every aspect of the burgeoning AI industry — from investing, infrastructure, and chip design. That sprawling strategy is unmatched outside a handful of US and Chinese Big Tech companies, which have had years, if not decades, to build their businesses and technical expertise,” the company said in a statement.

“US tech firms increasingly view Gulf states and their powerful sovereign wealth funds as critical sources of investment, with American tech executives in talks with regional officials about investments and raising capital,” it added.

Amin confirmed ongoing discussions with prominent US tech players, including OpenAI, Elon Musk’s xAI, and venture capital firm Andreessen Horowitz, regarding potential equity partnerships.

HUMAIN was launched in early May, just before US President Donald Trump’s visit to Riyadh, an event attended by major tech leaders such as Musk, OpenAI CEO Sam Altman, and Nvidia’s Jensen Huang.

Since its launch, HUMAIN has signed deals worth $23 billion with US tech giants, including Nvidia, AMD, Amazon Web Services, and Qualcomm. Based on current market rates, the cost of the overall project is estimated at $77 billion, according to Amin.

The company aims to handle 7 percent of global AI model training by 2030, focusing on both model development and inferencing capabilities.

“There are two paths you could take: you take it slow, and we are definitely not taking it slow, or you go fast. Whoever reaches the end line first, I think, is going to secure a good chunk of the market share,” Amin said.

Saudi Arabia, like the UAE, is prioritizing collaboration with US tech companies to address American concerns over potential technology transfers to China — despite China being the region’s largest trading partner.

Amin stressed the strategic value of US partnerships, noting, “If you go and look at our suppliers, you’ll discover that we were deliberate on the partnerships and the choices that we have picked . . . we did not want to make mistakes.”

The initial phase of HUMAIN’s data center park will include a 50-megawatt facility powered by 18,000 Nvidia chips, expected to be operational by next year. Future expansions aim to scale capacity up to 500MW, ultimately requiring 180,000 chips.

In a $10 billion joint venture with AMD, the company plans to deliver 500MW of capacity over five years. HUMAIN is also investing $2 billion with Qualcomm to build data centers and strengthen chip design capabilities in the Kingdom. As part of the agreement, Qualcomm will establish a chipset design center in Riyadh, employing 500 engineers, although the firm has no plans to manufacture chips.

Amin stated that chip procurement from US suppliers will begin within the next 30 days and expressed confidence that the initiative will gain support from the Trump administration.

This development follows Washington’s recent announcement to revoke a Biden-era regulation restricting AI chip sales to countries such as Saudi Arabia. A replacement rule is expected to be introduced.

Addressing data privacy and security concerns, Amin said HUMAIN will provide real-time inventory access for clients to audit data usage instantly. He added that new legislation in Riyadh is expected to ensure data centers comply with the legal framework of the client’s home country.

HUMAIN’s launch supports Vision 2030, Saudi Arabia’s sweeping economic diversification plan. The company is expected to foster local innovation, drive intellectual property development, and attract leading global AI talent and investment.