Egypt eyes increasing private sector’s contribution to investments to 65% in 3 years

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The Egyptian government aims to boost the private sector’s contribution to 65% of the total economic investments in the coming three years, Prime Minister Mostafa Madbouly stated during the global press conference on May 15th.

The private sector’s contribution to the total investments in Egypt accounted for 30% during fiscal year (FY) 2021/2022, while the public sector’s contribution amounted to 70%, Madbouly said.

The government is expected to officially announce ownership policies for state-owned enterprises this month, upon which the sectors they can operate within and exit from will be specified within the next three years, he revealed.

The policies will be periodically reviewed as per international standards, he pointed out.

Moreover, the Prime Minister stressed that Egypt targets monetizing assets worth $40 billion over the coming four years through entering partnerships with the local or foreign private sector.

In a similar vein, he pointed out that Egypt could become a large hub for the production of green hydrogen and ammonia as the government signed a number of memoranda of understanding (MoU) with major global companies to pump up to $40 billion investments by 2030.

Regarding obtaining the industrial lands, Madbouly noted that the country would turn to the usufruct right to benefit from the lands unrestrictedly, under which the pricing would be only related to the value of facilities.

He also announced that 51,000 industrial operation licences were issued for large- and medium-scale factories in the last four years to begin operations immediately, which offered around 2.5 million new jobs.

Egypt plans to complete an integrated strategy for the intellectual property, while studying the possibility of establishing a national authority for intellectual property, he remarked.

As per the state’s initial public offerings (IPOs) program, the government seeks to float stakes in 10 state-run companies on the Egyptian Exchange (EGX) before the end of this year, the Prime Minister highlighted.