Egypt’s Cabinet has approved the qualification of the National Company for Petroleum and the National Company for Natural Water in Siwa (SAFI), both of which are affiliated with the National Service Projects Authority, ahead of a stock exchange listing.
Last October, Ayman Soliman, the Executive Director of Egypt’s Sovereign Fund, revealed Egypt’s intention to sell stakes in two army-owned companies, namely a chain of gas stations owned by a National Petroleum Company and a mineral water bottling company (SAFI).
In what would be the country’s first offering of military-owned companies, the Defense Ministry’s National Service Projects Organization chose Egypt’s sovereign fund to sell a national company that controls about 200 fuel stations and a Safi mineral water bottling company.
In addition, Bloomberg Agency reported in June that two companies from the UAE and Saudi are competing for an investment contract in the first Egyptian army-owned company to be introduced to investors.
Earlier this month, the Abu Dhabi-based AD Ports Group acquired stakes in two Egyptian shipping companies.
The Egyptian army controls a large portion of the economy and is tightening its grip on many sectors following the 2013 military coup.
Many sectors are still increasingly under the control of the military, including real estate, bridges, mineral water, household appliances, petrol stations, billboards, road construction, cement factories, pharmaceuticals, resorts, international schools, and others.
Moreover, the Cabinet also agreed to amend the Suez Canal Authority’s law, adding a number of articles, including the establishment of a fund under the name of the Suez Canal Authority Fund, which will have an independent legal personality and its headquarters in Ismailia Governorate. The Fund’s board of directors has the authority to establish branches or offices within Egypt.
The fund’s goal is to contribute to the long-term economic development of the Suez Canal Authority facility and its development by making the best use of its funds in accordance with the best international standards and rules to maximize its value. The fund further seeks to address crises and emergencies that arise as a result of exceptional circumstances, force majeure, or poor economic conditions.
