ABiQ explains why Egypt lists State-Owned Enterprises (SOEs) on its stock exchange. The decision to list SEOs in Egypt is not new, but it has been repeatedly postponed since 2020. The listing of SOEs on the stock exchange aims to provide some economic relief and restore the appetite for foreign investment in Egypt. ABiQ explains why Egypt is listing State-Owned Enterprises (SOEs) on its stock exchange.

Egypt and SOEs

The listing of SOEs on the stock exchange aims to provide some economic relief and contribute to restoring the appetite for foreign investment in Egypt. Many SOEs have come at a high cost, especially in the wake of the COVID-19 Pandemic. 

Egypt boasts more than 300 publicly-owned companies, and approximately 650 joint ventures and partnerships involving the state. The Egyptian economy is, however, suffering from an economic crisis as a result of the Ukraine war. The listing of SOEs on the stock exchange is expected to provide some economic relief and contribute to restoring the appetite for foreign investment in Egypt.

What is a SOE?

A State-Owned Enterprise or SOE is a business that is, partly or wholly, owned by a government. This entity partakes in commercial activities on behalf of the government.

The Egyption government retains and exercises control over certain industry sectors and is the primary shareholder of various SOEs. The key sectors in Egypt where SOEs play an important role are:

  • Electricity generation
  • Transport 
  • Diamonds
  • Military equipment
  • Forestry

Why is Egypt selling SOEs?

Egypt boasts a sizable collection of SOEs with more than 300 publicly-owned companies, around 650 joint ventures and partnerships involving the state. Many of which have come at a high cost to the government because of the economic effects of the COVID-19 Pandemic.

Furthermore, the Egyptian economy is suffering from an economic crisis as a result of the Ukraine war. There is severe pressure on the foreign exchange market and the local currency. The listing of SOEs on the stock exchange is expected to provide economic relief to the Egyption economy and to encourage foreign investment in Egypt.

Looking for other investment opportunities in Egypt?

At ABiQ, we provide validated data and trusted business intelligence covering Africa and the Middle East. We use our unique forecasting and project tracking tool to track projects worth over $5.8 Trillion in 68 countries across the Middle East and Africa so that you can stay ahead of your competitors and grow your business.

If you’re looking for some great investment opportunities in Egypt, contact us.

Looking to generate leads and develop your business in Africa and the Middle East?
Book a free demo.

You have Successfully Subscribed!

Did you find what you were looking for?

Join our mailing list to receive the latest news and updates from our team.