Egypt approves draft law regulating state ownership in companies

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The Egyptian cabinet has greenlit a draft law regulating state ownership in fully-owned companies by the state or those in which it holds a stake, as per a statement on May 15th.

The approved draft law encompasses a range of provisions, covering companies wholly owned by units of the state's administrative apparatus or public legal entities, as well as those jointly owned with state units.

Key components of the draft law include measures to implement the objectives outlined in the state ownership policy document.

These measures focus on enhancing governance in economic activities, directing investments towards crucial public sectors, attracting both domestic and foreign investments, fostering competition, and ensuring market neutrality.

Additionally, the law seeks to invigorate financial markets, introduce new trading sectors, optimize state-owned company performance, and maximize their investments.

The cabinet also approved the establishment of a dedicated unit, dubbed the "State-Owned Companies Inventory and Follow-up Unit."

The unit will be tasked with developing regulatory programs for state-owned or state-contributed companies, ensuring adherence to specified timelines and targets, and overseeing their execution within the broader policy framework.

It will work towards promoting private sector involvement in economic activities, proposing legal frameworks and policies, and aligning with international governance standards.

In addition, it will maintain a comprehensive database of state-owned companies, identify potential candidates for divestment or capital expansion, and oversee mergers or acquisitions to bolster market capitalization.