Cairo – Mubasher: Egypt plans to collect up to $6 billion before June 2023 by exiting stakes in state-owned companies, Egypt's Minister of Planning, Hala El-said, told Bloomberg Asharq.

The step comes amidst a time when the Egyptian government seeks to support the economy hit by Russia’s invasion of Ukraine.

The programme may include offering shares to the public or selling consolidated stakes to strategic investors, with the support of the Sovereign Fund of Egypt, according to the minister.

The Arab world’s most populous nation aims to attract more foreign direct investment (FDI), in parallel with talks for new financing from the International Monetary Fund (IMF).

The Egyptian minister, who is also chairing the Egyptian sovereign fund, revealed that the government will get in touch with additional wealth funds across the Gulf region and other countries, highlighting that sovereign funds are usually long-term investors and they add value in terms of expertise, financing, and technology.

Earlier this month, Egypt established a “pre-IPO” fund, aiming to restructure and prepare some state-owned assets to offer in the market. Egypt aims to transfer $3 billion worth of assets to this fund within a period of three to six weeks. The assets include a power plant set up in collaboration with Germany’s Siemens.

In August 2022, the Saudi Egyptian Investment Company (SEIC), wholly owned by Saudi’s Public Investment Fund (PIF), acquired state-owned minority stakes in four Egyptian companies at a value of $1.30 billion.

Last April, ADQ, an Abu Dhabi-based investment and holding company, acquired stakes in Commercial International Bank (CIB), Fawry, Alexandria Container & Cargo Handling Company, Misr Fertilizers Production Company (MOPCO), and Abu Qir Fertilizers and Chemical Industries.

These transactions were part of ADQ's objective to invest in Egypt's economic growth through its $20 billion joint strategic investment platform.