Egypt's Cabinet approves final version of State Ownership Policy Document

Habiba Hamdy , Wednesday 30 Nov 2022

The Egyptian Cabinet approved on Wednesday the final version of the State Ownership Policy Document (which determines the state's presence in the economy) pending submission to President Abdel-Fattah El-Sisi for ratification, a statement by the cabinet said.

State Ownership
Egypt's Prime Minister Mostafa Madbouly during the weekly Cabinet's meeting on Wednesday

 

The Cabinet reached the final version of the policy document after three-months of negotiations.

Assistant Prime Minister Osama El-Gohary said that "Egypt is the first country in the Middle East and Africa to publish a document that determines the shape of the state's investments for the next 10 years and that establishes an institutional framework for its implementation."

The document identifies the sectors from which the state plans to withdraw, decrease, or increase its presence over the coming three years.

In a panel discussion that was held back in July, Prime Minister Madbouly had said that the document  aims to expand the participation of the private sector in public investments from 30 percent at present to 65 percent within three years.

During the national economic conference, which was held in October, Madbouly said that exiting from some economic sectors does not mean that Egypt was selling its assets to foreign entities. Instead, he said, the aim of such exiting was to empower the private sector.

El-Gohary revealed on Wednesday that the State Ownership Policy Document contains comprehensive goals for the state’s future plans, and conveys a clear image of Egypt’s presence in different economic sectors in future years.

He also added that the document allows for optimal management of nationally owned assets, and creates an atmosphere for better investment, hence attracting private and foreign investments.

International organisations have asserted that the document is an important step for economic reform in Egypt and that it contributes to raising both medium and long-term GDP, the cabinet statement read.  

It also allows for improving the Egyptian business climate and for increasing the participation of the private sector in the national economy, the statement quoted the organisations as saying.

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