Egypt slashes foreign energy partner arrears by 78%; Prepares 10 oil firms for IPO on EGX
The Egyptian government has made significant strides in restoring confidence within its energy sector, announcing a reduction in arrears owed to foreign oil and gas partners from $6.1 billion in July 2024 to $1.3 billion as of March 2026. During a high-level meeting led by Prime Minister Mostafa Madbouly, Petroleum Minister Karim Badawi confirmed that the government remains on track to settle all remaining dues by June 30, 2026. This aggressive repayment strategy is part of a broader fiscal discipline program aimed at stabilizing the domestic energy market and attracting fresh foreign direct investment.
To further institutionalize the sector and unlock liquidity, the government is moving forward with the temporary listing of ten state-owned petroleum companies on the Egyptian Exchange (EGX). This initiative is designed to modernize corporate governance and leverage the sector’s recent growth to fund future expansions. Finance Minister Ahmed Kouchouk emphasized that the government is coordinating closely with the banking system to ensure a steady flow of liquidity, balancing fiscal stability with the need to secure strategic reserves of petroleum products for industrial and domestic consumption.