18th July 2023


Egypt to sell off State Assets

The announcement of the Egyptian government signing $1.9 billion worth of deals to sell equity stakes in state-owned entities has been welcomed by the International Monetary Fund (IMF).

The Egyptian government revealed that it had successfully raised $1.9 billion through its Asset Monetization Programme. This involved the sale of stakes in three state-owned companies, as well as a partial exit from a steelmaker.

IMF spokesperson Julie Kozack expressed support for the divestment, stating that it is a crucial aspect of the EFF-supported program. She emphasized that divestment facilitates the gradual withdrawal of the state from economic activities while generating resources for external financing and debt reduction.

Under the initiative, the government offered 25-30% minority stakes in three government-owned enterprises: Egyptian Ethylene and Derivatives Company (ETHYDCO), Egyptian Drilling Company (EDC), and Egyptian Linear Alkyl Benzene Company (ELAB). The contract for these stakes was awarded to the Abu Dhabi Development Holding Company (ADQ) for $800 million.

Furthermore, Arab Company for Hotels and Tourism Investment (ICON), a subsidiary of TMG Holding, collaborated with a foreign investor to increase the capital of the newly established Holding Company for Tourism and Hotels by 37%, amounting to $700 million.