Cairo: Prime Minister Moustafa Madbouly said that Egypt's success in settling all outstanding dues owed to foreign energy companies sends a strong message of confidence in the Egyptian economy.
According to State Information Service Egypt, in his remarks at a press conference following his tour of development projects in Beheira Governorate, Madbouly stated that arrears owed to foreign companies stood at $6.1 billion in June 2024. Although the government had planned to settle the dues by June 2026, the final payment was made on June 10, 2026.
He emphasized that this achievement has received positive international reactions and reflects the government's commitment to honoring its financial obligations. Madbouly added that President Abdel Fattah El Sisi closely monitored the repayment plan to ensure its completion.
Madbouly also reviewed ongoing efforts to upgrade infrastructure in Beheira, including development works on the International Coastal Road. He noted that the section linking Port Said and Alexandria is being expanded to improve traffic flow, increase road capacity, and enhance safety for motorists and freight transport.
During his inspection of the West Delta Deep Marine natural gas production sites and the Idku liquefaction plant, both mega projects implemented with international partners like Shell, Chevron, Total, and KUFPEC, alongside Egyptian national companies, Madbouly highlighted the strategic value of the $10 billion Idku plant.
He added that Idku will liquefy and re-export gas from the planned Cypriot field connection, fulfilling President Abdel Fattah El Sisi's directives to make Egypt an integrated regional energy hub.
In Rashid, the Prime Minister inspected the historic King Farouk Palace in Edfina, stating that plans are underway to maximize its tourism and hotel potential following restoration. He pointed out that Rashid ranks second after Cairo in Islamic monuments, noting the state is restoring them and developing the old area into an integrated tourist destination.
The Prime Minister visited Rashid Hospital, highlighting its comprehensive development to serve several neighboring areas, including the current installation of an advanced CT scanner and enhanced ICU services. Concluding the tour, Madbouly inspected the Rashid fishing port ahead of its upcoming operation.
Madbouly emphasized that the state keenly supports the local yacht manufacturing industry, which exports to the Gulf and Europe, as a promising value-added sector. He stressed that several key indicators reflect the strength of the Egyptian economy, led by the foreign exchange reserves exceeding $53.135 billion, marking a $125 million monthly increase.
He noted that annual inflation fell from 13.4% to 13%, proving that economic growth is proceeding at a solid pace. The Prime Minister stated that local wheat procurement from Egyptian farmers for subsidized bread has reached 4.63 million tons.
With an additional 170,000 tons allocated for seeds and pasta, the total stands at 4.8 million tons, with procurement continuing until the end of the month. He added that the government succeeded in earning the farmers' trust by setting fair wheat prices and ensuring payments within 48 hours.
Madbouly continued by stating that the government, supported by the ministers of finance and planning, is exerting major efforts to settle accumulated historical debts belonging to various state economic authorities. He noted that several settlement agreements will be signed in the near future.
He concluded that placing Rashid on the tourism map requires accelerating road network upgrades to improve accessibility, emphasizing that the city deserves to become a prominent tourist destination as soon as possible.
Madbouly announced that the second phase of the "Decent Life" (Haya Karima) initiative will launch next month, coinciding with the start of the new fiscal year, in implementation of President Abdel Fattah El Sisi's directives.
Madbouly emphasized that the state's economic reform path enhanced its resilience against unprecedented global crises. He pointed out that despite international reports predicting Egypt would be heavily impacted by regional conflicts, the national economy performed well, sustaining production levels despite inflation.
The Prime Minister added that there is a global shift toward cash subsidies, noting that the current system is inefficient. Supported by successful initiatives like "Takaful and Karama" and a database covering over 90% of citizens, Egypt is well-positioned to apply a dynamic cash subsidy system by categorizing society into segments to ensure aid reaches the most vulnerable.
Madbouly said Egypt's strategic wheat reserves have reached nearly 4.8 million tons, while local procurement operations continue across the country. The Premier said that around 4.65 million tons of locally produced wheat have been delivered so far during the current harvest season.
He added that farmers are receiving their payments within 48 hours of delivery, helping speed up procurement and encouraging greater participation in the supply season. Madbouly also noted that recent progress in food security has been supported by major agricultural projects, including Toshka and the New Delta, which have expanded cultivated land and increased production of strategic crops.