Adopts law to accelerate privatization
18 Aug 2025
On 18 August 2025, the President of Egypt signed Law No. 170 of 2025, Regulating Certain Provisions of State Ownership in Companies Fully or Partially Owned by the State (the “State-owned Companies Law”). The Law repeals the provision that had prohibited public legal entities, as well as companies and banks wholly owned by the State, from disposing of shares in public sector companies—except among themselves and strictly in accordance with the conditions set out in the executive regulations of the previous law.
The new Law introduces a revised framework to facilitate private sector participation by allowing private entities to acquire or increase shareholdings in State-owned companies. It also establishes additional mechanisms for State divestment from companies no longer deemed necessary for continued public ownership.
In addition, the Law provides for the creation of a central unit for State-owned enterprises. This unit is tasked with mapping State-owned and State-participated companies and implementing time-bound programmes for sales, initial public offerings, mergers and similar actions. It also introduces ex ante control on future State expansion: any State-owned enterprise must obtain prior approval before entering a new company in sectors where the State retains presence, and may not enter activities identified for full or partial exit.
Nature of measure:
Type:
-
Entry and establishment (Ownership and control)
Industry:
Inward FDI:
Yes
Outward FDI:
No
Sources:
