Egypt's state will keep control despite privatisations

Significance

The programme, set to resume in March, is advertised as a push towards privatisation in a bid to boost revenues, investor confidence and foreign investment. However, the simultaneous increase in economic activity by military-led firms and partially privatised SOEs calls into question the promised improvements for the private sector.

Impacts

• The president will push for the partial privatisation of SOEs, while leading the expansion of military-owned firms.
• Foreign-owned private companies will not risk expropriation, but will be subject to unfair competition from military-led firms.
• Listing SOEs on the stock market will increase transparency of the firms’ activities and financial standings.