The programme aligns with the government’s FY2024/2025–FY2026/2027 plan, announced in July 2024, which seeks to strengthen strategic partnerships and attract foreign investment in civil aviation.
This includes developing investment zones at Egyptian airports and transforming them into smart airports to enhance passenger experience and streamline travel.
The strategy involves studying international best practices in airport operations and applying those suitable for Egypt, while increasingly outsourcing airport management to private operators to boost revenue and service quality.
It also focuses on improving operational efficiency across companies affiliated with the Ministry of Civil Aviation and restructuring the National Aviation Company of Egypt and its subsidiaries.
Hurghada Airport: First step
Hurghada International Airport marks the first project under this strategy. The state plans to involve the private sector in operating 11 airports nationwide to improve service, raise efficiency, and accommodate growing travel and tourism demand.
Speaking to Ahram Online, economic expert Bilal Shoaib said the move is particularly significant in light of Egypt’s State Ownership Policy document.
Over the past decade, the state directly implemented large-scale infrastructure projects, spending over EGP 10 trillion, as these initiatives offered limited appeal to the private sector due to low returns and high risk.
He said the current phase marks a shift to a model that gives the private sector operational and investment responsibility, aligned with the State Ownership Policy’s goal of raising its share of economic activity to around 60–65 percent.
As per Shoaib, public-private partnerships in airport operations have become essential, given the need for significant additional investment to modernize security systems, technological infrastructure, passenger facilities, surveillance systems, and other requirements of modern international airports.
“Instead of the state shouldering these costs alone, the private sector is brought in as an investment and operating partner,” he said.
Civil Aviation Minister Sameh El-Hefny said the selection of Hurghada Airport as the first project under the programme was deliberate. The airport is Egypt’s second-busiest in terms of air traffic and a key tourism gateway on the Red Sea.
He expects the partnership to increase capacity, improve service quality, and attract more international flights, while maintaining full state ownership of the assets.
Official data highlight this growth: Hurghada Airport handled over 10.5 million passengers in 2024–2025, a 22 percent increase year-on-year, while total passenger traffic across all Egyptian airports surpassed 50 million on nearly 400,000 flights.
Wael Zaeir, a member of the Egyptian Tourism Chambers Federation, said developing Hurghada Airport is a pivotal step toward doubling the tourism capacity of the Red Sea region.
He stressed that the move is part of a broader, integrated approach rather than a standalone project.
Speaking to Ahram Online, Zaeir said the strategy includes expanding hotel capacity, improving tourist transport, and completing road and bridge networks, about 95 percent of which are already finished, creating a major improvement in tourism mobility nationwide.
He added that the state is also working to double the capacity of all airports nationwide, focusing on major tourism destinations such as Hurghada, Sharm El-Sheikh, Luxor, Aswan, Alamein, and Marsa Matrouh through comprehensive upgrades.
Moreover, at the core of this vision is Cairo International Airport’s Terminal 4 project, one of the most strategic initiatives to transform the airport infrastructure.
Prime Minister Mostafa Madbouly said the new terminal will use the latest smart technologies and handle up to 30 million passengers annually, increasing Cairo Airport’s total capacity to over 60 million.
President Abdel-Fattah El-Sisi confirmed in an official meeting that the project is part of a broader plan to turn Egypt into a regional aviation hub, while adhering to environmental standards and supporting a sustainable aviation system in line with the country’s green economy goals.
Modern state asset management
Shoaib described the approach as a modern model for managing state assets without relinquishing ownership.
He said previous privatization efforts often relied on outright asset sales, generating one-off revenues but depriving the state of long-term returns.
Under the public-private partnership model, he noted, the state can generate cumulative operational revenues that could match or exceed the value of asset sales within seven to ten years, while retaining ownership and turning assets into sustainable revenue sources to support sectors like subsidies, education, health, and security.
Regarding economic returns, Shoaib stated that Egypt’s tourism revenues currently range from $15 to $16.7 billion annually, driven by around 15 million tourists. The state aims to increase revenues to $50 billion and attract nearly 50 million tourists annually.
Such ambitions place enormous pressure on aviation infrastructure, requiring more airports and greater capacity, objectives that cannot be achieved without effective private-sector partnerships and fresh investment, he said.
He added that the economic benefits include increased foreign currency inflows, job creation, lower unemployment, higher GDP growth, stronger foreign reserves, and greater exchange-rate stability.
Digital transformation and competitiveness
In parallel, the Ministry of Civil Aviation has begun advanced talks with global aviation IT firm SITA to implement a comprehensive digital transformation plan for Egyptian airports.
The plan includes e-booking systems, artificial intelligence applications, baggage tracking, self-service platforms, and enhanced cybersecurity.
Minister El-Hefny said the ministry is pursuing a comprehensive vision to deploy smart systems across all airports to enhance regional and international competitiveness and provide passengers with a secure, advanced travel experience.
Zaeir said Cairo Airport’s Terminal 4 project is a strategic step, given the capital’s geographic location, which positions it to become a regional hub for transit and logistics.
“Egypt’s location, security stability, and improving service standards, despite regional challenges, qualify Cairo Airport to become a global transit hub,” he said.
Zaeir expects these efforts to drive a sharp rise in tourist arrivals, projecting that visitor numbers could reach around 19 million by the end of this December, an unprecedented figure, prompting the state to target 30 million tourists by 2030.
He added that the opening of the Grand Egyptian Museum has boosted tourism, especially cultural tourism, at a time when this sector is declining globally, with Egypt experiencing visitor growth far above expectations.
Growing international interest
Greece’s Copelouzos Group announced plans to expand its investments in managing and operating Egyptian airports, citing Egypt’s economic stability and shift toward a green economy.
Shoaib highlighted the direct link between aviation infrastructure development and foreign investment inflows, noting that foreign direct investment reached $46.5 billion by the end of 2024. This helped raise foreign reserves to around $50.5 billion and support exchange-rate stability.
By the end of 2025, the Ministry of Civil Aviation aims to reach a total airport capacity of 72.2 million passengers annually, supported by infrastructure expansion and smart systems.
Shoaib said airport development benefits not only tourism but also industry by supporting air cargo and facilitating exports, boosting the industrial sector’s share of GDP from its current 16–17 percent toward a target exceeding 20 percent.
Zaeir noted that Egypt has made substantial progress on the airport file and is moving forward with clear, well-calibrated steps.
“Just as the state succeeded in building one of the world’s best road networks, it is now completing the remaining pillars, most notably airports, logistics, and hotel capacity, confirming that tourism is now being managed through a comprehensive and integrated approach aimed at achieving a real and sustainable leap forward," he concluded.
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