An incentive package to boost manufacturing and exports for the next state budget is in the works, with the Finance Ministry in discussions with the Investment Ministry about measures to support the private sector with a specific focus on industry and exports and the unifying of procedures, Finance Minister Ahmed Kouchouk said yesterday at an event with the National Press Authority. “We want to eliminate the idea of exemptions from our dictionary, so we are currently relying on more sustainable incentives policies than the idea of granting exemptions,” Kouchouk explained.

The ministry has big targets for the end of the next fiscal year, planning to reduce the debt-to-GDP ratio to 84%, down from 89% at the end of the last fiscal year. This entails reducing external government debt to below USD 79 bn by June 2025.

Sovereign sukuk and green bonds will also play a role in this, by attracting more local investors to reduce the cost of borrowing, according to the minister.

Support for the middle class will also be a feature of the next budget, with Kouchouk explaining that increased social spending in this regard will help create more jobs and improve services.

But rising education and healthcare costs presents a challenge, with education costs rising 26% and healthcare by 25% in the first five months of the year — above the average sector spending growth of around 10%.

But we should be ok on the wheat import front, as the minister said that even if global wheat prices rise, the government is buying shipments when prices are low.

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