{"id":16729,"date":"2026-03-29T13:30:19","date_gmt":"2026-03-29T11:30:19","guid":{"rendered":"https:\/\/zawia3.com\/?p=16729"},"modified":"2026-10-24T14:56:36","modified_gmt":"2026-10-24T12:56:36","slug":"asset-sale-3","status":"publish","type":"post","link":"https:\/\/zawia3.com\/en\/asset-sale-3\/","title":{"rendered":"Chemicals and Metals Lead the List: Egypt Accelerates the Sale of 60 State-Owned Companies"},"content":{"rendered":"

The Egyptian government is preparing<\/span> to offer<\/span><\/a> 60 state-owned companies to the private sector before the end of next April; ownership of 40 of them will be transferred to the Sovereign Fund of Egypt, while 20 companies will be listed on the Egyptian Exchange in preparation for their sale, as part of a plan that the government<\/span> says<\/span><\/a> aims to restructure the public sector and state assets.<\/span><\/p>\n

This comes after the approval<\/a> by the International Monetary Fund of the combined fifth and sixth reviews of Egypt’s programme last February, which allowed the drawing of USD 2.3 billion, with praise for the recovery of growth to 4.4%, a primary surplus of 3.5% and a lower current account deficit, before the indicators retreated under the impact of the regional war since 1 March.<\/p>\n

However, the Fund stipulated<\/a> urgent structural reforms, including accelerating the exit from non-strategic public business sector companies, improving public debt management, applying unified governance in state-owned banks and companies, increasing non-oil tax revenues, and supporting the private sector by reducing government intervention, with the aim of raising growth to 4.8% and reducing inflation to 11.9% during the current year.<\/p><\/blockquote>\n

As part of its plan to sell the assets of state-owned companies, the Egyptian government<\/span> abolished<\/span><\/a> the Ministry of Public Business Sector, as part of the cabinet reshuffle last February, 40 years after its establishment, and said the aim was “to save public companies from collapse and preserve their role in employing millions of Egyptians.”<\/span>\u00a0<\/span><\/a><\/p>\n

Egyptian Prime Minister Mostafa Madbouly explained<\/span><\/a> at the time that the decision “came within the framework of a vision put forward years ago, based on the idea that the ministry’s role was transitional by nature, not permanent”, pointing out that “when the former Minister of Public Business Sector was appointed, he informed him that this ministry might be in its final stages, given that the aim was to reorganise the sector in preparation for a new phase”.<\/span><\/p>\n

The ministry<\/span> oversaw<\/span><\/a> 146 state-owned companies operating in multiple sectors, representing about 26% of a total of 561 state-owned companies as of July 2025, according to a government document. Operating under its umbrella were 6 holding companies in the fields of tourism and hotels, pharmaceuticals, chemical and metallurgical industries, spinning and weaving, and construction, while the document indicates that about 75% of the ministry’s companies were making profits, compared with 25% that incurred losses.<\/span><\/p>\n

In return, the government established what is known as the “State-Owned Companies Unit”, a central<\/span> body<\/span><\/a> affiliated with the Cabinet, to regulate government companies; it oversees their inventory and valuation and identifies those nominated for exit, listing on the stock exchange or transfer to the Sovereign Fund of Egypt, while imposing unified governance controls on boards of directors and submitting quarterly reports, and it is headed by an assistant to the Prime Minister.<\/span><\/p>\n

 <\/p>\n

Recommended reading:<\/b> Under the Impact of War: Egypt’s Economy Exposed on All Fronts<\/b><\/a><\/p>\n

<\/b>What Are the Details of the Government’s Offering Plan?<\/b><\/h1>\n

According to an informed government source who spoke to Zawia3, the first phase of the offering will include 20 public business sector companies, among them about 5 companies managed by the Holding Company for Chemical Industries and 5 companies affiliated with the “Metallurgical Industries Holding Company”, while the government will continue offering the remaining companies successively according to the agreed timetable before the end of next April.<\/p><\/blockquote>\n

The Egyptian state <\/b>owns<\/span><\/a> about 561 companies active in 18 economic fields, affiliated with 45 government bodies distributed among 19 ministries and 10 authorities, and spread across 16 governorates. The manufacturing sector tops the list of these activities with 175 companies, followed by the administrative and support services sector with 77 companies, then the transport and storage sector with 50 companies, then financial and insurance activities with 49 companies, and the real estate sector with 48 companies.<\/span><\/p>\n

This distribution comes within the framework of structural<\/span> transformations<\/span><\/a> linked to the implementation of the State Ownership Policy Document, as the number of state-owned companies fell during 2025 from 709 companies to 561 companies, a decrease of 148 companies, equivalent to 20.9%, while in contrast the number of owning bodies rose from 33 to 45, reflecting a reorganisation of the ownership structure and the distribution of public assets.<\/span><\/p>\n

The Egyptian government is moving in light of compound economic crises that exacerbate the bill of debts due for repayment during the current year, as<\/span> estimates<\/b><\/a> by international institutions indicate that debt maturities, especially external ones, range between about USD 60 billion and USD 70 billion, with a notable concentration of instalments in the first quarter, which deepens short-term financing needs and increases the sensitivity of the financial situation to any external shocks or disruptions in capital flows.<\/span><\/p>\n

Despite the government announcing<\/span> a reduction<\/span><\/a> in the debt-to-GDP ratio of about 12% over the past two years, and the subsequent<\/span> upgrade<\/span><\/a> of the credit rating by “Standard & Poor’s” last October, for the first time in seven years, the debt service burden has remained the most acute challenge. Official data indicate that debt service<\/span> accounts for<\/span><\/a> about 50% of total public expenditure, and about 72% of total revenues in 2024\/2025, among the highest ratios among peer countries.<\/span><\/p>\n

 <\/p>\n

Recommended reading:<\/b> Egypt Pays Its Debts with Debts: An Economy Living on the Next Bill<\/b><\/a><\/p>\n


\nWill Egypt Get Out of the Bottleneck?<\/b><\/h1>\n

Member of the House of Representatives and economic expert Dr. Mohamed Fouad says that the government offerings programme “does not represent the complete solution to the economic crisis, but is considered part of the solution”, stressing that its feasibility is linked to the extent to which it achieves real empowerment of the private sector, rather than being used as a tool to generate temporary liquidity. He explains that this path is not new. It began with the announcement of the offerings programme under Minister Hisham Tawfik, then continued with successive cabinet changes aimed at improving operational efficiency, up to the restructuring of the public business sector file and the assignment of the offerings file to other bodies.<\/span><\/p>\n

“Fouad” adds, speaking to Zawia3, that the deeper problem relates to the multiplicity of state ownership patterns, whether through public business sector companies, the Egyptian sovereign fund, or other financial institutions, considering that this overlap reflects “a crisis in the structure of state ownership” that goes beyond merely offering companies for sale. He affirms that being content with selling assets to provide short-term liquidity is “an inadequate solution”, calling for the adoption of a more comprehensive vision based on redefining the role of the state in the economy and organising its ownership clearly.<\/p><\/blockquote>\n

He also stresses the need for the exit from some activities to take place in a rational and organised manner, and not through what he described as “piecemeal selling”, warning against repeating previous experiences that did not achieve the desired results, and noting that the repeated talk of offering dozens of companies does not arouse enthusiasm in the absence of actual, tangible implementation, while affirming the importance of striking a balance between maximising the value of the assets offered and not resorting to selling merely to get rid of them or to provide immediate liquidity.<\/span><\/p>\n

In addition, “Fouad” affirms that real reform lies in bringing about a structural transformation in the management of the economy, based on an effective partnership with the private sector, with a clear definition of the state’s role as an economic actor, instead of being content with partial measures that do not address the core of the crisis.<\/span><\/p>\n

For his part, Professor of Economics and Trade at the University of Portsmouth, Dr. Ahmed Aboud, describes the step as “expected” within the framework of the government strategy aimed at expanding the role of the private sector and reducing the state’s presence in investment activity. He added that this direction is also consistent with previous recommendations by the International Monetary Fund to the Egyptian government.<\/span><\/p>\n

He explains to Zawia3 that through these offerings the Egyptian government aims to attract more foreign investment, contributing to the inflow of hard currency and strengthening the monetary reserve, in addition to supporting the dollar liquidity needed to meet obligations related to servicing external debt in the coming period.<\/span><\/p>\n

“Aboud” points out that this step has positive aspects for two main reasons: the first is that expanding private sector participation strengthens confidence in the Egyptian market and supports an environment of fair competition. The second is that the private sector’s entry as a partner in public business sector companies would raise operational efficiency and improve performance, given its flexibility and higher ability to achieve profitability, in addition to greater levels of efficiency and effectiveness compared with the government sector.<\/span><\/p>\n

 <\/p>\n

Recommended reading: 2026<\/b>: The Awaited Year of Economic Recovery or the Beginning of a New Debt Crisis?<\/b><\/a><\/p>\n


\nA Law to Accelerate the Sale of Assets<\/b><\/h1>\n

Egyptian President Abdel Fattah El-Sisi ratified, on 20 August last, new legislative<\/span> amendments<\/span><\/a> aimed at accelerating the procedures for selling government assets within what is known as the “State Ownership Policy Document” programme; these amendments grant the Sovereign Fund of Egypt wider powers to sell state-owned assets directly, shortening procedures that used to take months and perhaps years before any deal was completed.<\/span><\/p>\n

The law regulates companies whose capital is wholly owned by the state or in which it holds a stake, and covers companies linked to ministries, public authorities and state agencies, with exceptions for some companies of a strategic nature or established under international agreements. It also includes multiple mechanisms for disposing of state assets, including sale, offering on the markets, and mergers and divisions, to enhance transparency and economic governance.<\/span><\/p>\n

For its part, the International Monetary Fund<\/span> places<\/span><\/a> the privatisation file at the heart of its programme with Egypt, as the fastest way to reduce the state’s presence in the economy and attract hard currency through foreign investment. In the latest review, the Fund stressed the need to accelerate the exit from public sector companies, especially those that hold the lion’s share of the market, such as cement, steel and marble companies. However, this pressure collides with a complex reality: sale operations need a long time for valuation, pricing and negotiation, while the Fund demands urgent results.<\/span><\/p>\n

The economic researcher at the Egyptian Initiative for Personal Rights (EIPR), Mohamed Ramadan, believes that the government’s decisions come in light of its commitment to implementing its programme submitted to the International Monetary Fund, particularly in the context of the previous reviews, during which the Fund stressed the need to hasten the reduction of the government’s role in the various economic sectors and its exit from them.<\/span><\/p>\n

“Ramadan” tells Zawia3 that these steps are an extension of an approach that began in 2022, but this time they come under direct pressure from the Fund, noting that the most prominent sectors targeted in the coming period are those listed in the “State Ownership Policy Document”, foremost among them the construction and building sector, alongside other sectors, most notably cement, iron and steel, and marble, fields in which the state holds large shares that may reach a third of the market or more.<\/span><\/p>\n

He points out that the problem relates not only to the nature of the sectors offered, but extends to the mechanisms for implementing the exit itself, explaining that asset sale operations are by nature complex and take longer than the International Monetary Fund imagines, given the precise valuations, offering procedures and waiting for suitable market timing that they require to complete deals. He adds that insisting on accelerating the process may not be realistic in light of these considerations, affirming that even if some deals are completed in the coming months, their impact on the macroeconomy will remain limited, since the expected returns will not be large enough to bring about a fundamental transformation.<\/span><\/p>\n

<\/b><\/p>\n

How Did the Privatisation Path Begin?<\/b><\/h1>\n

In 2022, Cairo<\/span> began<\/span><\/a> a new phase of the government asset sale programme through major deals with Gulf investors: the Saudi sovereign Public Investment Fund<\/span> acquired<\/span><\/a> minority stakes in four government companies listed on the Egyptian Exchange, worth about USD 1.3 billion, through its subsidiary, the Saudi Egyptian Investment Company.<\/span><\/p>\n

In the same period, Abu Dhabi’s sovereign fund bought stakes in five government companies for about USD 1.85 billion,<\/span> concentrated<\/span><\/a> in the fertiliser, petrochemicals and logistics services sectors. Thus ownership of important parts of companies such as Abu Qir Fertilizers, MOPCO, Alexandria Container and Cargo Handling, and e-Finance moved to investors from Saudi Arabia and the UAE.<\/span><\/p>\n

\u00a0The Egyptian government, for its part,<\/span> linked<\/span><\/a> these deals to the necessities of increasing liquidity and repaying debt obligations, affirming that they come within a policy aimed at making the most of assets and regulating the state’s role in the economy while preserving the rights of future generations.<\/span><\/p>\n

However, the programme did not stop at the 2022 deals, but extended to new sectors in the following two years. In May 2023, the state<\/span> sold<\/span><\/a> 9.5% of Telecom Egypt’s shares through a secondary offering on the stock exchange worth EGP 3.75 billion (USD 121.6 million). A few months later, specifically in September, the Emirati company “Global Investment Holding”<\/span> acquired<\/span><\/a> 30% of Eastern Company for USD 625 million, in addition to a commitment to inject USD 150 million to finance tobacco purchases, which reduced the state’s share to about 20.95%.<\/span><\/p>\n

The government offerings programme in Egypt reflects a deeper transformation in the philosophy of managing the economy, going beyond merely selling assets to redefining the role of the state and the limits of its intervention. And while the government seeks to attract investment and strengthen dollar liquidity under the pressure of external obligations, challenges remain, whether in terms of implementing the exit efficiently, or striking a balance between maximising the value of assets and preserving the state’s developmental role.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Debt service swallows 72% of Egypt’s revenues, and the government responds by offering 60 state-owned companies in chemicals, metals and industries to the private sector before the end of April.<\/p>\n","protected":false},"author":4,"featured_media":19378,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[409],"tags":[],"kateb":[6247],"class_list":["post-16729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics-en","kateb-rasha-ammar"],"jetpack_featured_media_url":"https:\/\/zawia3.com\/wp-content\/uploads\/2026\/10\/state-company-sales-2026.png","_links":{"self":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/16729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/comments?post=16729"}],"version-history":[{"count":4,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/16729\/revisions"}],"predecessor-version":[{"id":23926,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/16729\/revisions\/23926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/media\/19378"}],"wp:attachment":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/media?parent=16729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/categories?post=16729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/tags?post=16729"},{"taxonomy":"kateb","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/kateb?post=16729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}