{"id":16741,"date":"2026-06-14T11:21:18","date_gmt":"2026-06-14T09:21:18","guid":{"rendered":"https:\/\/zawia3.com\/?p=16741"},"modified":"2026-10-24T19:37:20","modified_gmt":"2026-10-24T17:37:20","slug":"accelerating-asset-divestment","status":"publish","type":"post","link":"https:\/\/zawia3.com\/en\/accelerating-asset-divestment\/","title":{"rendered":"Egypt Accelerates Asset Divestment Under Financing and International Reform Pressure"},"content":{"rendered":"

Amid<\/span> pressure<\/span><\/a> from the International Monetary Fund to complete the Egyptian state’s full exit from the economy, the government<\/span> announced<\/span><\/a>, at the start of this June, the offering of a number of state-owned companies on the stock exchange before the end of next September, which<\/span> will include<\/span><\/a> four major divestment deals from state assets with total expected proceeds estimated at about $1.5 billion.<\/span><\/p>\n

Prime Minister Mostafa Madbouly revealed during a press<\/span> conference<\/span><\/a> that the government had completed the temporary listing of 16 state-owned companies, with a plan to complete the listing of 4 other companies before 30 June this month, noting the start of temporary listing procedures for 10 companies in the petroleum sector in order to offer them on the stock market, and he stated that<\/span> the government<\/span><\/a> aims to offer 4 to 5 state-owned companies on the stock exchange before the end of 2026.<\/span><\/p>\n

The Egyptian government is intensifying its efforts, in the current period, to implement the programme of divestment from state-owned companies and assets, by selling stakes to strategic investors or offering them on the stock exchange, as part of a wider package of economic reforms to which Cairo committed before the International Monetary Fund<\/span> under<\/span><\/a> a financing agreement worth $8 billion, which includes strengthening the role of the private sector and reducing the state’s direct presence in economic activity.<\/span><\/p>\n

The Fund requires urgent structural<\/span> reforms<\/span><\/a> including accelerating divestment from non-strategic public business sector companies, improving public debt management, applying unified governance in state 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 lowering inflation to 11.9% during the current year.<\/span><\/p>\n

For his part, Dr Hussein Eissa, Deputy Prime Minister,<\/span> said<\/span><\/a> that the government aims to complete 10 divestment deals in the coming period, as part of implementing the State Ownership Policy Document and strengthening the role of the private sector in the economy, explaining during a panel session at the annual meeting of the American Chamber of Commerce that the government hopes to complete two new deals out of 4 companies affiliated with the Armed Forces, in addition to completing 6 additional deals before the end of the year, bringing the total number of companies targeted for offering or divestment to about 10 companies.<\/span><\/p>\n

In the latest step on this track, the Egyptian government<\/span> announced<\/span><\/a>, a few days ago, the sale of the Gabal El-Zeit wind farm in the Red Sea region to the Emirati company Alcazar for $420 million, with total<\/span> losses<\/span><\/a> of about $150 million, as the station’s investments had cost $567.4 million, while the government explained that the proceeds will go<\/span> towards reducing<\/span><\/a> the debt.<\/span><\/p>\n

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State Ownership Policy: examples of sector decisions<\/h3>\n\n\n\n\n\n\n\n
Exit within three years<\/th>\nRemain: hold \/ reduce investment<\/th>\nRemain: hold \/ increase investment<\/th>\n<\/tr>\n<\/thead>\n
Food services and accommodation<\/td>\nMining and quarrying<\/td>\nSuez Canal<\/td>\n<\/tr>\n
Retail trade<\/td>\nElectricity<\/td>\nHealth<\/td>\n<\/tr>\n
Construction<\/td>\n<\/td>\nSocial work activities<\/td>\n<\/tr>\n<\/tbody>\n<\/table>
Source: State Ownership Policy, 2022.<\/figcaption><\/figure>\n
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State Ownership Policy by economic activity<\/figcaption>
<\/div>
<\/div>
Activity<\/th>Exit<\/th>Retain: hold or reduce investment<\/th>Retain: hold or increase investment<\/th><\/tr><\/thead>
Agriculture<\/td>83<\/bdi><\/td>17<\/bdi><\/td>0<\/bdi><\/td><\/tr>
Real estate<\/td>0<\/bdi><\/td>50<\/bdi><\/td>50<\/bdi><\/td><\/tr>
Transport<\/td>0<\/bdi><\/td>42<\/bdi><\/td>58<\/bdi><\/td><\/tr>
Information and communications<\/td>11<\/bdi><\/td>11<\/bdi><\/td>78<\/bdi><\/td><\/tr>
Finance and insurance<\/td>0<\/bdi><\/td>33<\/bdi><\/td>67<\/bdi><\/td><\/tr>
Education<\/td>0<\/bdi><\/td>11<\/bdi><\/td>89<\/bdi><\/td><\/tr>
Water and wastewater<\/td>14<\/bdi><\/td>57<\/bdi><\/td>29<\/bdi><\/td><\/tr>
Youth and sport<\/td>0<\/bdi><\/td>100<\/bdi><\/td>0<\/bdi><\/td><\/tr><\/tbody><\/table><\/div>
State Ownership Policy, 2022<\/span>