Egypt will sell stakes in several military-owned companies through its $12 billion sovereign wealth fund.
- Egypt plans to sell stakes in military-owned companies through its sovereign wealth fund.
- The privatization drive is aimed at enhancing private sector involvement and meeting IMF conditions.
- The sovereign wealth fund was established in 2018 to attract foreign investment and encourage private-sector partnerships.
Egypt will sell stakes in several military-owned companies through its $12 billion sovereign wealth fund, including Safi, Wataniya Petroleum, Chillout, Silo Foods, and the National Company for Road Construction, the cabinet announced on Wednesday.
The initiative is part of a broader privatization drive aimed at enhancing private sector involvement, one of the key conditions set by the International Monetary Fund for Egypt to access an expanded $8 billion loan package, Reuters reported.
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Established in 2018, Egypt’s sovereign wealth fund was designed to attract foreign investment and encourage private-sector partnerships in state-owned enterprises.
Although the government and military have historically been reluctant to relinquish control of key assets, officials now appear to be accelerating the program. Egypt aims to sell stakes in at least 10 companies in 2025, including two military-owned entities.
Military’s expanding economic footprint
Dozens of military-owned enterprises have expanded rapidly since President Abdel Fattah al-Sisi, formerly an armed forces chief, took office in 2014 after leading the ouster of Islamist President Mohamed Mursi.
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Their growing presence in the economy has sparked concern among local businesses and foreign investors over potential unfair competition.
The government, however, maintains that there is a level playing field and argues that military-backed companies help fill critical market gaps.
Egypt’s sovereign wealth fund will also offer old government buildings in downtown Cairo to investors starting in July, Prime Minister Mostafa Madbouly said at a press conference.
