Egypt Plans to Offer Stakes in Military Companies via Sovereign Fund

Deal News | Apr 09, 2025 | Zawya

Egypt's government has announced plans to offer stakes in military-owned companies through its sovereign wealth fund, a move aimed at fulfilling conditions for an $8 billion loan from the International Monetary Fund (IMF). Among the companies to be offered are Safi, Wataniya Petroleum, Chillout, Silo Foods, and the National Company for Road Building. The country's $12 billion sovereign wealth fund, established to foster private sector partnerships and foreign investments, will manage the restructuring of these assets. This divestiture strategy aims to integrate the private sector into the economy more robustly. Since President Abdel Fattah al-Sisi took office, military-owned companies have expanded significantly, creating concerns among local and international investors. The program aims to expedite the sale of stakes in 10 companies, including two military-owned entities, by 2025. In support of the offerings, Egypt has engaged financial service companies EFG Hermes Holdings and CI Capital to promote and cover the deals.

Sectors

Sovereign Wealth Funds
Military and Defense
Financial Services

Geography

Egypt – The entire divestiture strategy and related activities are based in Egypt, impacting its economy and investment landscape.

Industry

Sovereign Wealth Funds – The article centers on a sovereign wealth fund that manages the divestiture process of state-owned military companies.
Military and Defense – Involves the divestiture of companies owned by the military, highlighting the defense sector.
Financial Services – The involvement of financial service companies EFG Hermes Holdings and CI Capital in promoting and managing the offerings.

Financials

$8 billion – Loan from the International Monetary Fund contingent on private sector integration.
$12 billion – Value of the Egypt Sovereign Wealth Fund managing the asset divestitures.

Participants

Name	Role	Type	Description
Egypt Sovereign Wealth Fund	Manager of divestitures	Government	Established in 2018 to manage state asset divestitures and attract foreign investments.
Egyptian Government	Seller	Government	Initiating the sale of military-owned company stakes to boost private sector involvement.
EFG Hermes Holdings	Financial advisor	Company	Engaged to promote and manage the stake offerings.
CI Capital	Financial advisor	Company	Tasked with promoting and covering the divestiture offerings.
Safi, Wataniya Petroleum, Chillout, Silo Foods, National Company for Road Building	Target companies	Companies	Military-owned companies that the government plans to divest stakes in.