Egypt to offer stakes in military-owned companies via its sovereign wealth fund
Egypt has been divesting state assets to boost the role of the private sector, a requirement imposed by the International Monetary Fund for an expanded $8 billion loan.
Egypt's $12 billion sovereign wealth fund will be involved in the restructuring and subsequent offering of the military-owned companies.
The fund was established in 2018 with the aim of fostering private sector partnerships and help foreign investment to flow into state-owned companies. The government and military were previously hesitant to relinquish control over some assets.
Dozens of military-owned companies have flourished since Abdel Fattah al-Sisi, a former armed forces chief, became president in 2014, a year after leading the military in ousting Islamist President Mohamed Mursi.
This raised concerns among local businessmen and foreign investors.
However, the government has been trying to expedite the programme, seeking to sell stakes in at least 10 companies in 2025, including two military-owned ones.
The offerings would be completed through 2025 and 2026, the cabinet said.
(Reporting by Momen Saeed Atallah; Writing by Tala Ramadan and Nayera Abdallah; Editing by Louise Heavens and Ed Osmond)
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