Egypt moves to privatise four more state-owned companies

Egypt has taken another step in its long-running privatisation drive after granting preliminary stock market listings to four state-owned companies.

• Egypt has granted preliminary stock market listings to four state-owned companies as part of its ongoing privatisation efforts.
• Three of the companies are from the petroleum sector, while the fourth is involved in real estate and tourism.
• These listings are a significant step towards eventual IPOs, aimed at expanding private sector involvement in the economy.
• The initiative is aligned with commitments under Egypt's $8 billion IMF programme, focusing on structural reforms and attracting foreign investment.

Egypt has taken another step in its long-running privatisation drive after granting preliminary stock market listings to four state-owned companies, paving the way for the sale of government stakes and reinforcing commitments made under its economic reform programme backed by the International Monetary Fund (IMF).

The Egyptian cabinet announced on Sunday that three of the companies are from the country's petroleum sector: Engineering for Petroleum and Chemical Industries (ENPPI), Egyptian Linear Alkyl Benzene Company (ELAB), and Petroleum Marine Services. The fourth company is Maamoura for Reconstruction and Tourism Development, which operates in the real estate and tourism sectors, according to Reuters.

The preliminary listings mark an important milestone ahead of the companies' eventual initial public offerings (IPOs) or share sales on the Egyptian Exchange. While the government has not announced a timeline for the offerings, the move signals that preparations are advancing as Cairo seeks to expand private sector participation in the economy.

According to a separate statement from Egypt's Ministry of Petroleum, the combined capital of the three petroleum companies stands at approximately $687 million, highlighting the strategic importance of the planned offerings.

The listings form part of Egypt's broader state asset divestment programme, launched to reduce the government's footprint in the economy, attract foreign investment, and strengthen public finances.

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Meeting IMF commitments

The initiative also aligns with commitments made under Egypt's $8 billion IMF support programme, which calls for structural reforms, greater private sector involvement, and a more competitive business environment.

Egypt has previously announced plans to list stakes in 30 state-owned enterprises across a range of sectors, including banking, energy, transport, and manufacturing. The programme is expected to generate much-needed foreign currency inflows while encouraging broader participation in the country's capital markets.

Investment Minister Mohamed Farid Saleh recently said the government expects four state-owned companies to complete listings before May 2027. He also noted that Egypt has either met or exceeded several performance targets agreed with the IMF, including reducing the fiscal deficit and maintaining a stronger primary budget surplus.

The latest listings come as Egypt continues to implement economic reforms aimed at restoring investor confidence following years of foreign currency shortages, elevated inflation, and pressure on public finances.

By opening more state-owned enterprises to private investment, the government hopes to stimulate economic growth, improve corporate efficiency, and create a more attractive environment for both domestic and international investors.