Egypt appears to be ready to privatize its state-owned airports starting as early as next year, according to a report in Business Today Egypt.

Paraphrasing government cabinet spokesperson, Mohamed El-Homosany, who was interviewed on Al-Sharq TV, the publication said that plans were now in place to bring in the private sector to run and operate several Egyptian gateways. The process is expected to begin next year.

Egypt has been mulling an airport privatization process for some time and the International Finance Corporation (IFC), the private sector arm of the World Bank, was brought in to review the options. IFC is taking a key role as a strategic advisor to the government for the sell-off.

President Abdel Fattah el-Sisi is keen to develop tourism in the country. On the appointment of ambitious former retail banker Ahmed Issa as tourism minister in 2022, Issa wasted no time in outlining a clear plan for the privately funded growth of Egypt’s tourism sector.

Tourism Remains a Big Focus

Tripling seat capacity to the country and pushing up annual tourist numbers to as high as 40 million by 2027 was one of Issa’s aims, with an expansion of the low-cost carrier market central to these targets. The current minister for tourism, Sherif Fathy, has forecast more than 15 million tourists by the end of 2024, a 5% increase.

Improving airport management and boosting revenue through public-private partnerships (PPPs) will be a first step in transforming Egypt’s aviation sector to underpin broader economic objectives—not just tourism, on which many observers say the country is too reliant.

El-Homosany told Al-Sharq that the IFC will be laying the groundwork to enable a privatization process. This will include the engagement of consultants and setting down procedures for tenders and reviews of bids from interested parties.

Below we look at the background to the process, the Egyptian government’s attitude to privatization, and whether investors will be convinced.

Investor Insights