Egyptian Prime Minister Mustafa Medbuli announced that the government has signed contracts to sell $1.9 billion worth of shares in state assets.
Egyptian Prime Minister Mustafa Medbuli announced that the government has signed a series of contracts worth $1.9 billion to sell shares in state assets. Accordingly, the management will sell the $1.9 billion stake to local firms and the Abu Dhabi Wealth Fund ADQ.
Medbuli, at the press conference he held, stated that the government aims to strengthen the private sector so that it can assume the leadership in the economy in the coming periods.
Stating that the government has signed contracts worth $1.9 billion to sell shares from state assets, Medbuli noted that the government is also preparing to announce share sales exceeding $2 billion.
Medbuli stated that 1.65 billion dollars of the 1.9 billion dollars agreements will be paid in foreign currency and the remaining amount will be paid in cuneyh.
Abu Dhabi Wealth Fund buys $800 million minority stake
ADQ, Egypt Ethylene and Derivatives Co., oil company Egypt Drilling Co. and petrochemical producer Egypt Linear Alkyl Benzene for $800 million.
On the other hand, local real estate developer Talaat Moustafa has invested $700 million in a holding company that owns seven leading state-run hotels, including the Old Cataract in Aswan and the Winter Palace in Luxor.
In addition, the government made a move to sell Ezz Aldekhela Steel for over $230 million, allowing the company to be listed on the Egyptian Stock Exchange.
Other deals in progress are the sale of the Gabal El-Zeit wind farm and a Siemens-built power plant, planning minister Elsaid said. It is stated that these agreements can be completed in October and early 2024, respectively.
Pointing out that the sale policy of state assets is an economic policy unrelated to the crisis, Medbuli stated that Egypt aims to increase its foreign exchange reserves by an average of 70 billion dollars annually in the next 3 years, and to reach the total foreign exchange revenues of the state to 191 billion dollars in 2026.
The sale of state shares to the private sector in Egypt is among the conditions put forward by the International Monetary Fund (IMF) to start the $3 billion economic reform package program with Cairo.