Egyptian Finance Minister Ahmed Kouchouk told Reuters a few days ago: "The Egyptian government aims to issue USD 2 billion in sukuk (bonds) in 2025 through more than one offering." He noted that banks have been appointed for this purpose, and "we are in the very advanced stage of studies" for the bonds issuance.
Egyptian Prime Minister Mostafa Madbouly said in a statement that Egypt intends to offer stakes in a number of companies affiliated with the armed forces, such as the National Petroleum Company, Shell Out, Silo Foods, Safi, and the National Roads Company, through the Sovereign Fund of Egypt (TESF)
The statement noted the Prime Minister witnessed the signing ceremony of several cooperation agreements between the TESF, the Armed Forces National Service Projects Organization (NSPO), and a group of specialised local and international consulting firms regarding the restructuring and management of the offering of a number of companies affiliated with the NSPO.
Egypt has begun divesting state-owned assets as part of a programme to boost the role of the private sector, a condition of the International Monetary Fund's (IMF) USD 8 billion extended loan. The Cabinet said in a statement that the USD 12 billion in the TESF would restructure and manage the offerings. The statement added that the transaction would be implemented by the TESF under the supervision of the Central Bank of Egypt (CBE).
The sovereign fund, TESF, was established in 2018 to promote private sector partnerships and facilitate foreign investment flows to state-owned companies. The government and military have been reluctant to relinquish control of some assets, however. The Egyptian government wants to accelerate the programme and sell stakes in at least 10 companies, including two military-owned companies, by the end of 2025.
The cabinet stated that EFG Hermes Holding and CI Capital would promote and underwrite the offering. The Cabinet has also said the initial public offerings (IPOs) of some of these companies will be completed in 2026.
Egyptian Finance Minister Ahmed Kouchouk has said: "Egypt is very open to any initiatives related to debt-for-investment swaps, similar to the Ras El-Hikma deal that the Egyptian government signed with the UAE last year." Regarding the impact of the recent US tariffs on Egypt, Kouchouk stressed there is still dialogue and discussion on the matter, noting the need to consider the issue comprehensively.
Fitch Solutions confirmed in a recent report that the effects and repercussions of the new US tariffs on Middle East and North Africa (MENA) would be limited, particularly for the Gulf Cooperation Council (GCC) countries.
The agency explained that the region's exports will not be significantly affected, except for oil prices rises and rising inflation rates. According to the agency's report, the greatest repercussions of these tariffs will be on the region's debt-laden emerging markets, namely Egypt, Jordan, and Lebanon, as these countries will be significantly affected by the increased cost of debt due to the global strength of the US dollar.
The report said that the effects on Egypt would be indirect, not on exports and foreign trade, but rather due to the large debt and the rising value of the US dollar globally. This will lead to downward pressure on the Egyptian pound, which will hinder the decline in inflation rates, and the anticipated monetary easing cycle in the Egyptian market as a result of high interest rates.
According to the report, this will affect economic growth in Egypt, and the slowdown in US interest rate cuts will affect foreign investments in debt instruments in emerging markets, including Egypt. This could lead to the withdrawal and liquidation of some foreign portfolios there.
Photo: Egypt intends to offer sukuks (bonds) in military companies (by Adobe).