Egypt to float military-owned firms as part of economic reform drive

Egypt is preparing to list stakes in several military-affiliated companies on the stock exchange, in a major step towards reducing state control and encouraging private sector participation in the economy. Prime Minister Mostafa Madbouly announced the move following the signing of an agreement between the Sovereign Fund of Egypt, the Armed Forces’ National Service Projects Organization, and a group of investment banks and consultancy firms on Wednesday April 9.

The firms slated for partial privatization include fuel station operators Wataniya and Chillout, bottled water producer Safi, food manufacturer Silo Foods, and the National Company for Roads Building and Development.

Madbouly confirmed that the first offerings would take place this year, with additional listings to follow in 2026. He described the initiative as part of Egypt’s broader “state exit strategy,” aimed at unlocking the value of state-owned assets while fulfilling key requirements set by the International Monetary Fund (IMF). The IMF has called for stronger private sector involvement as a condition of its financial support, and last week disbursed a $1.2 billion tranche under an expanded $8 billion support program agreed in March 2024.

The move comes as Egypt grapples with mounting economic challenges, including high debt levels and an ongoing foreign currency shortage. In response, the government has implemented tough austerity measures—such as devaluing the currency and raising interest rates—to stay on course with its IMF-backed reforms. The inclusion of military-run companies in the privatization drive marks a notable shift in policy and is seen as a test of Egypt’s commitment to economic transparency and liberalization.