Prime Minister Mostafa Madbouly said the final version of the document is expected to be completed before 30 September.
Under its theme “Deepening Reform and Maximizing Impact 2026-2030,” the new edition of the document aims to re-establish the private sector’s role as a key partner and participant in the economy’s development.
Due to the importance of private sector-led growth, the government is targeting the sector’s contribution to economic activity to exceed 65 percent by 2030, and a GDP rate of over seven percent, according to Madbouly.
Over the past three years, the private sector’s contribution has surpassed 56.5 percent of total investments. The PM affirmed that private-sector participation could potentially exceed the 65 percent target within the next two years.
Moreover, this comes after the document’s first edition, launched in 2022, expired. It also follows an unprecedented drop in private-sector investments, mainly due to unstable external circumstances between 2023 and 2025.
The SOP intends for the government to slowly exit from several economic activities to give room for the private sector to increase its investment through the Initial Public Offering (IPO) mechanism
The IPO programme initially targeted listing 35 government companies on the Egyptian Stock Exchange (EGX) when it was launched in 2023, with plans to add 10 more and four Armed Forces-affiliated firms.
During the third year of implementing the document, in 2025, 48 percent of its four phases were completed, generating $5.86 billion, according to the Information and Decision Support Center (IDSC) third follow-up report on the SOP implementation.
Second edition updates the state’s role in the economy
The newest edition includes new regulations that select which sectors and state-owned assets are capable of operating under the document, as well as roles that “clarify the state’s role in the economy as a governing framework, transforming its role in managing the economy into a neutral market regulator and enabler,” Assistant to the Prime Minister and head of the IDSC, Osama El-Gohary, said.
According to El-Gohary, Egypt has generated $5.9 billion from 23 divestment transactions carried out under its State Ownership Policy (SOP), with the total rising to $37 billion when the Ras El-Hekma and Alam El-Roum agreements are included.
Speaking at a press conference, El Gohary said the revision of the State Ownership Policy document is part of the government's scheduled three-year review of the targeted sectors.
"The amendments came at the expected time. From the outset, we announced that the targeted sectors would be reassessed after three years. Our philosophy has also evolved—we no longer evaluate each company separately, but rather assess sectors as a whole," he said.
El-Gohary said Egypt drew on the experiences of nine countries in revising the policy, namely Norway, Estonia, Latvia, Costa Rica, Sweden, Italy, Germany, Finland, and Switzerland.
He added that international experience highlights the importance of periodically updating state ownership policies by reassessing the state's role as an asset owner, clearly defining the rationale for state ownership, separating ownership from regulatory functions, strengthening governance and transparency, and adopting measurable performance indicators.
According to El-Gohary, the second edition introduces 12 key changes, including a dedicated chapter outlining the state's economic role through seven core functions: enabling markets, providing public goods, acting as a neutral regulator and guarantor of equal opportunities, upholding the rule of law, serving as an active strategic owner, delivering citizen-centred public services, and enhancing the resilience of the economy.
He said the revised policy also marks a shift in the state's ownership philosophy by focusing on 13 priority sectors.
Unlike the first edition, which based ownership decisions primarily on sectoral considerations, the new framework adopts a portfolio management approach, with decisions made at the company level while considering the overall asset portfolio.
Under the revised approach, state ownership will be limited to activities with clear strategic, sovereign, or social justifications, while state assets will be managed according to investment principles, he added.
Economic authorities were included for the first time
El-Gohary said the second edition of the State Ownership Policy includes economic authorities for the first time, a move aimed at centralizing state asset management, streamlining ownership structures, and improving investment oversight.
He added that the State-Owned Enterprises Unit will examine restructuring state-owned entities, including economic authorities, into joint-stock companies governed by the Companies Law.
The government is also studying mechanisms to centralize ownership management by transferring commercially viable assets to specialized entities, foremost among them the Sovereign Fund of Egypt, in a bid to improve governance and management efficiency.
In addition, the affiliation of state-owned companies will be reassessed according to the nature of their activities, with a gradual ownership reorganization programme to be implemented through 2030, El-Gohary said.
The government will not only manage state-owned assets but also provide public goods and correct market failures. It would also support economic resilience and guarantee institutional quality to provide a favourable environment for the private sector.
The new document will also develop the tax system and customs reforms to facilitate trade, expedite the digital transformation of investment services, simplify procedures, and enhance investment incentives.
Furthermore, it will also feature developments in the State-owned Enterprises Management Unit to structure state ownership management, enhance the centralization of asset management, regulate company affiliations, and raise the efficiency of investment oversight to maximize economic returns.
El-Gohary has also confirmed that the government approved the Economic Entities Platform, which aims to unify and simplify procedures and services provided to investors, such as issuing licenses, approvals, and related services.
The platform will be overseen by the Ministry of Investment and Foreign Trade and is part of Egypt’s efforts to empower its national private sector and improve foreign direct investment flow into the Egyptian market, Madbouly said.
The updates to the document are based on comments on the first edition from FitchSolutions, the World Bank Group, and the International Monetary Fund (IMF).
Launching the second edition coincides with anticipated decisions of the IMF’s concluded seventh review of the Extended Fund Facility (EFF) programme with Egypt and its second review for the Resilience and Sustainability Facility (RSF) programme, which will unlock $1.6 billion in financing for the country.
Egypt’s programme with the IMF is set to wrap up in mid-December 2026.
These organizations have raised concerns that the first edition of the document suggests a trend of retaining stakes in firms, rather than a full acquisition or divestment.
The IMF had warned during the US-Israeli war on Iran that risks still pressure the economy, keeping financing and energy needs high, thus weakening fiscal stability and debt conditions if not addressed.
Egypt’s debt servicing costs consumed nearly 76 percent of total revenues during the first 10 months of fiscal year 2025/26.
Debt service, coupled with EGX’s limited size, can hinder the economy's ability to absorb large offerings as it remains busy with local and individual investors.
The situation becomes even more dire if we also consider that public offerings do not guarantee the highest return for the state, compared to selling to investors amid rising inflation, interest rates, and market volatility.
At the end of 2025, Egypt said it plans to list more state-run companies on the EGX in 2026. The country is also considering legal changes to modernize financial markets, increase market capitalization, and improve trading efficiency.
Although some firms have begun acquiring stakes in state-owned firms, no companies have yet been listed on the EGX. The goal was to raise $5 billion under the State Ownership Policy Document.
Egypt is also preparing Banque du Caire for listing on the EGX by November 2026.
It is expected that 30 percent of the offering will be subscribed to within one week of the listing, according to Hashem El-Sayed of the State-owned Enterprises Management Unit.
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