Egypt announced on July 11, 2023, that it signed contracts to sell stakes in state assets worth $1.9 billion. The sales aim to boost the private sector and raise hard currency. The most significant deals include: the $700 million sale of a stake in a holding company to Talaat Moustafa, an $800 million sale of minority stakes in three oil and petrochemical sector companies to Abu Dhabi sovereign wealth fund ADQ, and a $230 million sale of a 31% stake in Ezz Dekheila steel company.
Foreign investors are expected to contribute $1.65 billion in these deals, with the remaining amount paid in Egyptian pounds.
These sales are seen as a positive step for Egypt’s struggling economy, which has faced foreign currency shortages and high inflation. The government hopes that attracting foreign investment through these sales will stimulate economic growth. Furthermore, an additional $1 billion in contracts is expected to be announced soon.
The sale of state assets forms a crucial part of Egypt’s economic reform program. Alongside this, the government aims to reduce subsidies, enhance tax collection, and improve the business environment. These reforms are aimed at attracting foreign investors and boosting economic growth, making Egypt’s economy more appealing to international stakeholders.
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