Egypt's Strategic Moves: Military-Owned Firms to Open to Private Sector

Egypt plans to sell stakes in military-owned companies through its sovereign wealth fund to boost private sector participation, as required by the IMF. The initiative includes fuel, food, and construction firms, signifying a shift toward economic diversification and attracting foreign investment.

The Egyptian government has unveiled plans to offer stakes in several military-owned companies via its sovereign wealth fund, as part of efforts to expand private sector involvement in the economy. This decision aligns with requirements set by the International Monetary Fund (IMF) for a broadened private sector role.

Among the firms targeted for stake sales are Wataniya Petroleum, mineral water company Safi, Silo Foods, and the National Company for Road Building. Financial services giants EFG Hermes Holdings and CI Capital will handle the promotion and underwriting of these offerings. This move follows the proliferation of military-owned businesses since President Abdel Fattah al-Sisi's rise to power in 2014.

The initiative seeks to address concerns about market competition while enhancing foreign investment. Additionally, the wealth fund plans to redevelop government properties in downtown Cairo, which could further stimulate Cairo's economic and cultural rejuvenation efforts. Established in 2018, the fund aims to foster private sector partnerships and attract foreign investment to state-owned firms.

(With inputs from agencies.)