The Central Bank of Egypt (CBE) has announced its intention to sell a portion of its shares in United Bank (UB) on the Egyptian Exchange (EGX) by the end of the first quarter of 2025, an official statement showed.
UB stake sale
The transaction is contingent upon receiving necessary approvals from the Financial Regulatory Authority (FRA) and the Egyptian Stock Exchange (EGX).
The decision was announced shortly after the government completed the sale of 100% of the state-owned Tamwwely microfinancing company to an international consortium, marking a clear indication that the government is resuming its divestment plan, which includes the initial public offering (IPO) program.
UB, along with its non-banking subsidiary, operates a robust network of 68 branches and 225 ATMs, employing approximately 1,800 staff. As of June 2024, it reported total assets of EGP 106 billion, a substantial increase from EGP 72 billion in 2021. The bank’s profitability also saw a remarkable rise, achieving EGP 1.742 billion by the end of December 2023, compared to EGP 1.145 billion in December 2021.
UB provides a wide range of financial products and services tailored to a diverse clientele, including retail customers, institutions, and small- to medium-sized enterprises (SMEs). This move aligns with Egypt’s commitment to enhancing the private sector’s role in the economy, in conjunction with its $8 billion loan program with the International Monetary Fund (IMF) aimed at fostering private-sector growth.
State-owned assets
In 2023, Egypt announced plans to offer its state-owned assets to strategic investors or to list a stake in the EGX, in line with the State Ownership Policy ratified by the Egyptian President in 2022.
Egypt is committed to increasing the private sector’s share in the economy, aiming to enhance GDP growth and create more job opportunities.
In its follow-up report on the implementation of the State Ownership Policy, the Cabinet’s Information and Decision Support Centre (IDSC) noted that Egypt has generated nearly $30 billion in proceeds from the IPO program since its inception. This total includes a landmark deal with the UAE to develop the Ras El-Hekma coastal zone, amounting to $35 billion.
