Why does the Egyptian government sell some of its companies’ assets to Gulf countries?

  • Ahmed Shousha
  • BBC – Cairo

3 hours ago

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The government sold a minority stake in companies owned by it to Saudi and Emirati funds

Deal following deal announced by the Egyptian government to sell its stakes in commercial companies to countries in the Gulf.

A few days ago, Egypt announced that the Saudi Investment Fund had acquired minority stakes owned by the Egyptian state in four leading companies listed on the stock exchange, at a value of $1.3 billion. Egypt in two other companies for the UAE Fund.

The Egyptian Minister of Planning, Hala Al-Saeed, said in a statement announcing the latest deal, “It comes in accordance with objectives that achieve the highest benefit for the Egyptian state, maximize the exploitation of assets owned by it, and guarantee the rights of future generations.”

swapping debts for assets

Hani Tawfik, the former head of the Egyptian and Arab Investment Associations, believes that “the sale was forced to Saudi Arabia and the UAE because of Egypt’s need to pay the installments and interests of its owed debts.”

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