Egypt Advances State Company Restructuring with 60 Firms Targeted for Investment

Egypt Unveils Major State Company Restructuring Plan

Egypt is set to restructure and open 60 state-owned companies for investment, a move announced on Monday, February 16, 2026. This initiative is a key component of the government's broader economic reform agenda, aiming to enhance private sector participation and attract foreign investment. The plan involves transferring 40 companies to the Sovereign Fund of Egypt (TSFE) and preparing another 20 companies for listing on the Egyptian Exchange (EGX).

Deputy Prime Minister for Economic Affairs, Hussein Issa, confirmed the details, stating that he is currently reviewing the files of the 40 companies recommended for transfer to the TSFE by the unit responsible for restructuring state-owned enterprises. Procedures are also underway for the temporary listing of the 20 companies on the EGX, ahead of their full listing. Prime Minister Mostafa Madbouly emphasized that the restructuring of economic authorities and state-owned firms is a top government priority, with efforts intensifying to accelerate executive measures to improve their efficiency and performance.

Strategic Objectives of the Restructuring

The primary objectives behind this extensive restructuring program are multifaceted. The government aims to:

• Increase private sector involvement in the economy.
• Attract more investment, both domestic and foreign.
• Generate much-needed foreign currency.
• Reduce the state's direct role in commercial activities.
• Meet the government's financial obligations.

This initiative aligns with Egypt's 'State Ownership Policy', a roadmap outlining sectors where the state will exit or scale back to enable greater private investment.

The Role of the Sovereign Fund of Egypt

The Sovereign Fund of Egypt (TSFE), established in 2018-2019, plays a crucial role in this restructuring. Its mandate is to contribute to Egypt's sustainable economic development by attracting private investments and managing state-owned assets efficiently. The TSFE acts as the state's investment arm, tasked with maximizing the value of these assets for future generations. The transfer of companies to the TSFE is designed to optimize their management and prepare them for potential partnerships or further investment.

Egyptian Exchange Listings and Broader Economic Context

The decision to list 20 companies on the Egyptian Exchange (EGX) is intended to widen the ownership base of Egyptian companies and provide new investment opportunities. The Financial Regulatory Authority (FRA) has recently updated its rules for listing and de-listing securities, aiming to stimulate new listings and enhance market transparency.

This current phase of restructuring builds upon previous efforts. Since launching its privatization initiative in February 2023, which initially targeted 32 state-owned companies, Egypt has completed 21 deals across 11 economic sectors, securing approximately $6 billion from the sale of stakes in state-owned enterprises. The program is a vital part of Egypt's economic reform efforts, particularly as the country seeks support from the International Monetary Fund (IMF) and works to stabilize its economy amidst foreign currency shortages and rising debt.