Egypt has approved the listing of two military-owned companies on the stock market knowing that the military holds a veritable economic empire
#Army #Business #Defense #Economy #EGYPT
Agence Ecofin
Friday 29 July 2022 Last update on Friday, July 29, 2022 At 7:00 AM

The significant weight of the Egyptian army in the economy exceeds 40%. This is regularly criticized by experts who see it as an obstacle to free competition and a foil for local and foreign private investors.

In Egypt, the Council of Ministers announced, in a statement issued after its meeting held on Wednesday July 20, that it had approved the listing of two companies owned by the army on the stock market.

These are the company Safi, which specializes in the production and bottling of mineral water and olive oil, and the petroleum products distribution company Wataniya, which operates a vast network of service stations throughout country, the statement said.

In Egypt, the army has a real economic empire, whose activities range from agriculture to food industries, through military industries, the distribution of hydrocarbons and the realization of major infrastructure projects. Its weight in the Egyptian economy exceeds 40%, according to estimates by Egyptian economists.

The country has been facing serious economic difficulties since the start of the war in Ukraine. President Abdel Fattah al-Sissi (photo) called last March for the partial privatization of several dozen public companies, including those owned by the army, by the end of the current year.

This privatization program, part of which will go through the Cairo Stock Exchange, should enable the State to reap 10 billion dollars each year for four years.

The heavy weight of the army in the Egyptian economy is regularly decried by experts who see it as an obstacle to free competition and a foil for local and foreign private investors.

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