meed-logo

line1 line2 line3
SIGN IN / REGISTER

Egypt faces political and economic trials

22 February 2024

Commentary
John Bambridge
Analysis editor

Egypt finds itself both at the centre of a regional conflagration of conflict and in an increasingly difficult fiscal position – challenges that are requiring Cairo to think carefully about its every move.

Since October, the war in Gaza has compounded the perils on Egypt’s borders, with the protracted civil strife in Libya to the west and the fierce fighting in the Sudanese civil war to the south. 

The latest conflict has robbed Egypt of its last remaining quiescent land border and triggered strikes by the Houthis on shipping in the Red Sea that have in turn dramatically impacted the revenue from the passage of traffic through the Suez Canal. It has also pushed the Egyptian government into a complex geopolitical standoff with Israel.

Domestically, President Abdel Fattah El Sisi’s administration is wrestling with a deepening fiscal crisis driven by a decade of extravagant spending on infrastructure projects across the country. Public debt now stands at around 90% of GDP, and debt servicing has been increasingly eating into the budget in recent years, even as revenues have wavered amid repeated knocks to global trade and travel.

High inflation due to the rising cost of imports has led to chronic weakness in the Egyptian pound that has it bound for a further devaluation – to join three other devaluations in the past three years, alongside El Sisi’s seminal devaluation back in 2016. A further correction in the exchange rate by the central bank is also one of the terms that the IMF is pushing for in the final negotiations over the reforms expected in exchange for fresh financing.

The financial package being worked out with the IMF nevertheless represents a lifeline for Cairo, which otherwise could be struggling to pay its bills as $8bn-worth of loans come due over the next four years, on top of the country’s other burgeoning capital and operational costs.

Beyond the border, the situation in Gaza is threatening to spill over onto Egyptian soil – a development that would metastasise a humanitarian catastrophe that is currently only partly Cairo’s problem into one that is wholly its problem. Israeli politicians have repeatedly voiced a desire to forcibly displace the Gazan population into Egypt, and several leaked reports have revealed their attempts to convince Cairo to acquiesce to the same – an unappealing and politically precarious prospect for El Sisi.

El Sisi’s claim to political legitimacy, beyond Egypt’s questionable electoral process, has been built on the promise of security, great works and economic progress. Under the present circumstances, convincingly delivering that trifecta looks set to be an increasingly tricky prospect.

 

  MEED’s March 2024 special report on Egypt also includes:

> Cairo beset by regional geopolitical storm
> More pain for more gain for Egypt
> Egypt oil and gas project activity declines
> Familiar realities threaten Egypt’s energy hub ambitions
> Egypt’s desalination projects inch forward
> Infrastructure carries Egypt construction

https://image.digitalinsightresearch.in/uploads/NewsArticle/11528305/main.gif
John Bambridge

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • SLB passes evaluation for Kuwait upstream project

    12 December 2025

    The US-based oilfield services company SLB, formerly Schlumberger, has passed the technical bid evaluation for a major project to develop Kuwait’s Mutriba oil field.

    The Houston-headquartered company was the only bidder to pass the technical evaluation for the Mutriba integrated project management (IPM) contract.

    The minimum passing technical evaluation score was 75%.

    The full list of bidders was:

    • SLB (US): 97%
    • Halliburton (US): 72%
    • Weatherford (US): 61.5%

    The decision was finalised at a meeting of the Higher Purchase Committee (HPC) of state-owned Kuwait Petroleum Corporation (KPC) on 20 November 2025.

    According to a document published earlier this year by KOC, the IPM tender for the Mutriba field aims to “accelerate production through a comprehensive study that includes economic feasibility evaluation, well planning and long-term sustainability strategies”.

    The field was originally discovered in 2009.

    Commercial production from the Mutriba field started earlier this year, on 15 June, after several wells were connected to production facilities.

    The field is located in a relatively undeveloped area in northwest Kuwait and spans more than 230 square kilometres.

    The oil at the Mutriba field has unusually high hydrogen sulfide content, which can be as much as 40%.

    This presents operational challenges requiring specialised technologies and safety measures.

    In order to start producing oil at the field, KOC deployed multiphase pumps to increase hydrocarbon pressure and enable transportation to the nearest Jurassic production facilities in north Kuwait.

    The company also built long-distance pipelines stretching 50 to 70 kilometres, using high-grade corrosion-resistant materials engineered to withstand the high hydrogen sulfide levels and ensure long-term reliability.

    KOC also commissioned the Mutriba long-term testing facility in northwest Kuwait, with a nameplate capacity of around 5,000 barrels of oil a day (b/d) and 5 million standard cubic feet of gas a day (mmscf/d).

    Once this facility was commissioned, production stabilised at 5,000 b/d and 7 mmscf/d.

    In documents published earlier this year, KOC said that starting production from the field had “laid a solid foundation” for the IPM contract by generating essential reservoir and surface data that will guide future development.

    Future output from the field is expected to range between 80,000 and 120,000 b/d, in addition to approximately 150 mmscf/d of gas.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15235579/main.png
    Wil Crisp
  • SAR to tender new phosphate rail track section in January

    12 December 2025

     

    Saudi Arabian Railways (SAR) is expected to float another multibillion-riyal tender to double the tracks on the existing phosphate railway network, connecting the Waad Al-Shamal mines to Ras Al-Khair in the Eastern Province.

    MEED understands that the new tender – covering the second section of the track-doubling works, spanning more than 150 kilometres (km) – will be issued in January.

    The new tender follows SAR’s issuance of the tender for the project's first phase in November, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.

    The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.

    The scope also covers support for signalling and telecommunication systems.

    The tender notice was issued in late November, with a bid submission deadline of 20 January.

    Switzerland-based engineering firm ARX is the project consultant.

    MEED understands that these two packages are the first of four that SAR is expected to tender for the phosphate railway line.

    The other packages expected to be tendered shortly include the depot and the systems package.

    In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.

    Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

    Adding a second track and the freight yards will significantly increase the network’s cargo-carrying capacity and facilitate increased industrial production. Project implementation is expected to take four years.

    State-owned SAR is also considering increasing the localisation of railway materials and equipment, including the construction of a cement sleeper manufacturing facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15229624/main.jpg
    Yasir Iqbal
  • Contract award nears for Saudi Defence Ministry headquarters

    10 December 2025

     

    Saudi Arabia’s Defence Ministry (MoD) is preparing to award the contract to build a new headquarters building, as part of its P-563 programme in Riyadh.

    MEED understands that bid evaluation has reached advanced stages and the contract award is imminent.

    The MoD issued the tender in April. The commercial bids were submitted in September, as MEED reported.

    Located to the northwest of Riyadh, the P-563 programme includes the development of facilities and infrastructure to support the MoD’s broader initiatives under the kingdom’s Vision 2030 strategy.

    It covers the construction of:

    • A new military city featuring the MoD headquarters, support and logistics facilities, a residential and commercial community and space for future command centres
    • A National Defence University with a library, conference centre and academic buildings
    • A self-sustaining Joint Forces Command compound located approximately 50 kilometres from the military city

    The budget for the entire programme is expected to be $10bn-$12bn.

    In September 2023, MEED reported that Spain-headquartered Typsa had won two contracts for the project.

    The first contract, worth $11.4m, included data management, geographic information systems management, geotechnical reporting and the preparation of the phase one final traffic report. The contract duration was 270 days from the notice to proceed.

    The second contract, valued at $10.8m, involved preparing four conceptual masterplans for the P-563 site. It was set to last 255 days from the notice to proceed.

    These followed a $290m consultancy contract awarded to Typsa in March of the same year. The single-award task order covered a three-year base period, with an optional two-year extension.

    Typsa’s scope of work included programme management planning, communications, change and quality management and cost and schedule tracking.

    It also included design requirements, codes, standards and submission requirements, programme guidance, study integration, risk analysis and management, design reviews and a programme-of-work breakdown plan.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15222401/main.gif
    Yasir Iqbal
  • Firms prepare Riyadh government office PPP bids

    10 December 2025

     

    Firms are preparing to submit bids for a contract covering the construction of the Riyadh administrative office for Defence Ministry (MoD) personnel.

    The clients have asked firms to submit their bids by 26 March 2026.

    The MoD is developing the project in collaboration with Saudi Arabia's National Centre for Privatisation & PPP (NCP). 

    The project will be implemented under a design, build, finance and maintain contract with a term of 27.5 years.

    The administrative complex, located in the north of Riyadh, will cover about 52,793 square metres. It will accommodate 4,500 employees and provide 3,200 parking spaces.

    In September, the NCP announced the prequalified bidders for the project. These include:

    • Tamasuk / Alghanim International (local/Kuwait)
    • Mota-Engil / Tatweer Buildings Company / Alternative Resources Investments (Portugal/local/UAE)
    • Albawani / Areic (local/local)
    • Bonyan Real Estate Investment / Artar (local/local)
    • FCC / IHCC (Spain/local)
    • Vision Invest (local)
    • Own Real Estate (local)
    • Alfanar (local)
    • Lamar Holding (local)
    • Alyamama (local)
    • El-Seif Engineering Contracting (local)
    • Al-Kifah Holding Company (local)
    • Alargan (Kuwait) 
    • Asyad (Oman)

    The NCP and MoD started the expression of interest and request for qualification process for the project in May, as MEED reported.

    According to an official statement, "the selected private-sector partner will be responsible for the design, construction and long-term maintenance of the facilities and supporting infrastructure, as well as coordination with stakeholders and obtaining all necessary permits".

    The value of public-private partnership (PPP) contracts in Saudi Arabia has risen sharply over the past few years as the government seeks to develop projects through the private sector and diversify funding sources.

    PPPs have been used in Saudi Arabia and the wider GCC region for over two decades, but have been mainly limited to power generation and water desalination plants, where the developer benefits from guaranteed take-or-pay power-purchase agreements that eliminate demand risk.

    However, in the past three years, the government has successfully implemented PPPs in several new sectors, including education and healthcare, to finance, build and operate schools and hospitals. Forthcoming PPP projects include the estimated $2.5bn Asir-Jizan highway, which would be the first road concession in the GCC; the multibillion-dollar contract to develop the expansion of Abha International airport; and the Qiddiya high-speed rail scheme.

    Outside the utilities sector, the NCP has more than 170 PPPs in the pipeline, covering long-term concession agreements in projects as diverse as municipal laboratories, television and radio tower infrastructure, court complexes and logistics zones.

    As capital expenditure continues to increase, the NCP is expected to add dozens more PPPs to its future pipeline to relieve the state’s financial burden and to stimulate the private sector’s involvement in the local projects market.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15222216/main.jpg
    Yasir Iqbal
  • Municipality seeks consultants for Dubailand drainage project

    10 December 2025

    Register for MEED’s 14-day trial access 

    Dubai Municipality has invited consultants to prequalify for a contract to provide supervision services on a major drainage infrastructure project serving developed communities in Dubailand.

    The sewerage and stormwater drainage project, listed under the code DS-204-S1, is being procured through the government’s Sewerage and Recycled Water Projects Department (SRPD).

    The bid submission deadline is 8 January.

    The consultancy contract follows the issuance in November of the related construction package, DS-204-C1, for which the municipality invited contractors to prequalify.

    The scope includes sewage gravity pipelines with diameters of up to 2,200mm, a sewage lift station with a capacity of three cubic metres a second, and a 1,400mm-diameter sewage rising main that will take pumped sewage from the lift station to the main sewer network.

    The bid submission deadline for the construction package is also 8 January 2026.

    The tenders form part of Dubai’s wider investment in sewerage expansion, including the $8bn Tasreef programme, for which several projects have moved into the execution phase in recent months.

    Once completed, the Tasreef system is expected to increase Dubai’s overall drainage capacity by about 700% and provide daily stormwater treatment capacity exceeding 20 million cubic metres.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15218750/main.jpg
    Mark Dowdall