Egypt is accelerating its privatization drive, with the energy sector emerging as a central pillar of its strategy to expand private sector participation and unlock state assets. According to the State Ownership Policy Document, the government aims to target $10 billion in annual asset monetization while increasing the private sector’s contribution to 65% of the economy within three years.
A revived IPO pipeline—led by state-owned petroleum companies—is now taking shape as a key mechanism to deliver on these goals. In a recent move, the government initiated the temporary listing of 10 state-owned petroleum companies on the Egyptian Exchange (EGX), marking a shift in how public assets are prepared for market participation and valuation.
The petroleum push
At a meeting in the New Administrative Capital, Prime Minister Mostafa Madbouli directed officials to accelerate preparations for upcoming listings, emphasizing that the temporary inclusion of these companies on the EGX is designed to strengthen their financial position, improve competitiveness, and attract new investment.
Minister of Petroleum and Mineral Resources Karim Badawi outlined a strategy aligned with Egypt’s Vision 2030, noting that the listings are intended to reshape how these companies operate and are managed. By leveraging the sector’s recent operational momentum, the government aims to generate liquidity to fund expansion, while also introducing market-based performance benchmarks through daily trading activity.
This direction was reinforced by Dr. Hashem El-Sayed, CEO of the State-Owned Enterprises Unit, who highlighted governance as a core objective. He noted that six petroleum companies had already been temporarily listed in recent days, a step viewed positively within economic circles as it allows for more transparent valuation ahead of full public offerings.
Macroeconomic backdrop
Egypt’s privatization push comes amid a complex global economic environment, yet recent reforms have drawn support from international institutions.
During the April 2026 Spring Meetings, IMF Managing Director Kristalina Georgieva commended the country’s fiscal approach.
“It is very rewarding to see how Egypt, having implemented difficult reforms, is now in a better position to face this shock,” Georgieva stated. “We see Egypt as one of the good examples of a country that has gone through difficult reforms, has built responsible policies, and is acting in a way that helps people that most need this help.”
Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, echoed this view, pointing to the role of a flexible exchange rate and targeted social programs.
“The abilities of the authorities developed by time and the program, targeted protecting the economy from these shocks,” Azour explained, noting that the economic impact remains manageable and that market confidence is reflected in the narrowing of sovereign spreads.
Governance, valuation, and market readiness
To assess the mechanics and investor appetite behind the planned listings, Business Monthly spoke with Hady Eleraky, Senior Government Affairs Analyst for Egypt, Libya, and Sudan at Moharram & Partners.
Eleraky emphasized that successful listings depend on more than policy direction, requiring alignment across governance, valuation, and market conditions.
“For state-owned assets, governance is what transforms a ‘government asset’ into a ‘market-priced company,'” Eleraky told Business Monthly. He noted that without auditable financials and a disclosure system that proves the company is managed with economic logic, success is unlikely. Valuation is equally critical.
On investor appetite, he described demand as selective, with institutional and foreign investors focused on pricing, transparency, and credible growth strategies.
The inclusion of large petroleum companies is also expected to influence market activity on the EGX.
“Energysector IPOs have the potential to significantly enhance liquidity and trading seriousness on the Egyptian Exchange, especially when large, financially strong petroleum companies are involved,” Eleraky explained. He added that complementary measures—such as tax incentives and improved foreign ownership rules—will be important to maximize impact.
Pricing remains a key determinant of success, with the temporary listing phase serving as a mechanism for price discovery.
“Pricing strategy is essential to the success of stateowned energy IPOs, as it directly affects payments, listing performance, and the credibility of the entire privatization program,” Eleraky warned, stressing the need for alignment between government expectations and market realities through independent valuations.
A test case for broader reform
The temporary listing of these petroleum companies represents a test for Egypt’s broader privatization agenda. If executed effectively, the energy sector could help deepen market liquidity and strengthen the role of the EGX as a platform for capital formation.
Looking ahead, Eleraky sees the initiative as a potential turning point for state-owned enterprises more broadly.
“As financially strong, strategically important companies, petroleum firms provide a highly visible test situation: if their listings deliver strong liquidity, attract institutional and foreign flows, and improve governance through stricter disclosure and oversight, they will demonstrate that partial privatization does not mean loss of control but rather enhanced efficiency and accountability which will increase investments in Egypt,” Eleraky concluded.
By transitioning these assets from state ownership into publicly traded entities, Egypt is not only raising capital but also embedding market discipline into its economic framework—an important step toward advancing its long-term reform agenda.
