Egypt sovereign fund to manage, operate armed forces affiliated firms ahead of private sector offerings
RIYADH: A group of companies affiliated with Egypt's Armed Forces National Service Projects Organization will undergo restructuring and management changes through a new agreement with the country's sovereign fund.
The deals, signed with several specialized local and international consulting firms, are part of efforts by relevant state agencies to implement the government's offering program.
This initiative involves transferring management and operations of several state-owned companies to private sector institutions, which is in line with the State Ownership Policy, according to a statement.
This falls in line with the aim of the Sovereign Fund of Egypt to foster private sector partnerships and help foreign investments flow into state-owned companies.
It also aligns with Investment Minister Hassan El-Khatib's comments in February, in which he outlined Egypt's plan to transfer management of state-owned enterprises to the country's sovereign wealth fund to maximize returns on state assets.
The newly released statement revealed that these agreements also include the offering of a group of firms from the Armed Forces National Service Projects Organization, including the National Petroleum Co., Shell Outlet, and Silo Foods, as well as Safi and the National Roads Co., through a group of specialized local and international consulting firms.
Under the deals, the offering of some of these companies is set to be completed in 2025, with the remainder scheduled for completion in 2026.
In March, Egypt secured a $1.2 billion disbursement from the International Monetary Fund following the completion of the fourth review of its economic reform program.
This disbursement, approved at the time by the IMF's Executive Board under the Extended Fund Facility, brings Egypt's total funding under the program to around $3.2 billion.
In addition, the IMF also approved at the time a $1.3 billion arrangement under the Resilience and Sustainability Facility to support Egypt's climate-related reforms.
The 46-month EFF arrangement, which was initially approved in December 2022, was designed to promote macroeconomic stability and drive structural reforms to support sustainable growth.
At the time, the IMF acknowledged Egypt's progress in stabilizing its economy, despite external challenges such as regional conflicts and trade disruptions.
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