Egypt has officially commenced the executive process of offering the management and operation of its airports to the private sector, according to a statement released by the Cabinet on Monday.
The country is set to introduce an international tender for the operation of Egyptian airports, including the prominent Cairo International Airport, as announced by Egypt’s Civil Aviation Minister, Mohamed Abbas Helmy.
This move marks the initiation of Egypt’s plan to transition the management and operations of critical logistics and transportation entities to the private sector, with the aviation industry being the first sector targeted.
In November 2023, Egyptian Prime Minister Mostafa Madbouly declared the impending offering of seaports, dry ports, and airports to private sector management. This strategic decision reflects Egypt’s commitment to fostering partnerships with private entities in the stewardship and operational aspects of mass transit systems.
The Egyptian Transport Ministry, in collaboration with global corporations, has formulated an integrated strategy to begin the localization of the industry, aligning with Egypt’s broader economic goals.
Supporting this initiative, the European Bank for Reconstruction and Development (EBRD) provided substantial financial aid in July 2023, amounting to $533.7 million. This financial assistance is part of Egypt’s extensive privatization and restructuring measures for the public sector.
Under the Egypt 2022-2027 strategy, launched by the Minister of International Cooperation, Rania Al-Mashat, in March 2022, the EBRD approved a development financing package worth $400 million for the National Bank of Egypt. This funding is intended to support Small and Medium Enterprises (SMEs), focusing on regional companies led or owned by young entrepreneurs.
The bank also allocated $100 million to Banque Misr, aimed at improving financing for SMEs in a manner that promotes inclusive and sustainable growth. Additionally, it seeks to increase funding to SMEs in areas with limited access to financial services.
As part of its ongoing support, the EBRD approved another funding initiative for the Mediterrania Capital IV Fund, amounting to €30.2 million ($33.7 million). This demonstrates the collaborative efforts between Egypt and international financial institutions to bolster the private sector and facilitate economic growth.
The initiation of the privatization process for airports is a significant step in Egypt’s broader economic strategy, enhancing efficiency, attracting investments, and fostering economic development in the country. The international tender for airport operations is expected to generate considerable interest and participation from global aviation players.