Egypt’s New State Ownership Policy to Boost Asset Efficiency and Strengthen Private Sector Role, Says Economist
Egypt’s second State Ownership Policy Document for the 2026–2030 period marks a significant step in the country’s economic reform journey, shifting the government’s focus from direct economic activity toward more efficient management of state-owned assets and stronger private sector participation, according to Nermine Tahoun, economic expert and Co-Founder of Tahoun Legal Consulting.
Tahoun said the updated policy represents a qualitative evolution from setting broad objectives to adopting a more institutional approach to managing state-owned investments and assets in line with governance standards and economic efficiency principles.
She noted that the document goes beyond the concept of state divestment from selected sectors and instead offers a comprehensive framework for defining the relationship between the state and the private sector. The policy clearly identifies strategic sectors where the government will maintain a presence, while expanding opportunities for private investment in activities capable of generating higher economic value and attracting capital.
According to Tahoun, one of the document’s key strengths is the increased level of clarity and predictability it provides to both domestic and foreign investors, an essential factor in improving the business environment.
“Investors need clear visibility regarding the role of the state in the economy and the extent of its involvement in various sectors,” she said. “This helps ensure fair competition and encourages long-term private investment.”
Tahoun added that the revised policy addresses challenges that emerged during the implementation of the first version by introducing stronger execution and monitoring mechanisms and placing greater emphasis on competitive neutrality and equal opportunities between state-owned enterprises and private companies.
She highlighted the governance of state assets as one of the most positive aspects of the new document, noting that it introduces more robust management systems, performance measurement frameworks, and institutional mechanisms aimed at maximizing the economic returns generated by public assets.
“Efficient management of existing assets is just as important as attracting new investments,” Tahoun said. “Maximizing the value of state-owned assets represents a key source of economic support and contributes to improving public spending efficiency.”
She also pointed to the expansion of public-private partnership (PPP) programs as a major pillar of the policy, particularly in light of Egypt’s growing experience in implementing infrastructure and public service projects in collaboration with the private sector.
According to Tahoun, such partnerships can help ease pressure on the state budget while maintaining service quality and improving operational efficiency.
She stressed that the success of the policy should not be measured solely by the number of government offerings or the volume of investments attracted, but rather by its ability to enhance productivity, strengthen the competitiveness of the Egyptian economy, increase the contribution of the private sector to GDP, and create sustainable employment opportunities.
Tahoun concluded that the second State Ownership Policy Document sends a strong message to investors and international institutions regarding Egypt’s continued commitment to economic reform and private sector empowerment, emphasizing that effective implementation, transparency, and continuous monitoring will be the key factors in achieving the policy’s economic and developmental objectives over the coming years.