Egypt is moving to temporarily list ten state-owned petroleum companies on the Egyptian Stock Exchange as part of the government’s privatisation programme, in a step that Prime Minister Mostafa Madbouly and Petroleum Minister Karim Badawi say will improve corporate governance, attract international investors and generate liquidity for future energy sector expansion.
The temporary listing mechanism grants companies a six-month window to prepare their documentation and finances before shares begin trading publicly. Six state-owned companies have already been temporarily listed in recent days, according to Hashem El-Sayed, CEO of the Cabinet’s State-Owned Enterprises Unit.
Madbouly said the initiative aligns with Egypt’s State Ownership Policy — a strategic framework introduced in 2022 to increase private sector participation to 65 percent of total national investments by reducing direct state involvement in the economy through targeted divestments.
Badawi linked the listings to Egypt’s initial public offering programme, which forms a cornerstone of Egypt Vision 2030. He said the move will restructure management practices within state-owned petroleum firms, leveraging recent sector growth to generate capital for future projects. Companies selected for listing have been chosen on the basis of strong liquidity and demonstrated ability to attract institutional investors.
Beyond generating capital, the listings are expected to improve governance through stricter disclosure requirements, reduce reliance on state budgets and loans, and strengthen Egypt’s balance of payments. Badawi also noted that stock market listing creates a transparent, daily performance evaluation mechanism that could influence future mergers and acquisitions within the sector.
Source: Egypt Oil & Gas