Egypt to offer airports management, operation to private sector: Prime minister

CAIRO – 26 December 2024: Prime Minister Mostafa Madbouly said Egypt will open all airports for management and operation by the private sector as he met with key investors on Wednesday.

Madbouly said the Cabinet has approved partnering with the International Finance Corporation (IFC) to offer Egyptian airports for management and operation in collaboration with the private sector.

The premier suggested that this move should coincide with private sector involvement in establishing airlines through partnerships with the government, ultimately expanding Egypt's aviation fleet.

The meeting tackled crucial economic issues nationwide, including progress on the export rebate program, the government's plan to supply gas to the fertilizer industry, and measures to streamline customs clearance.

EXPORT REBATES, DEBT

Madbouly provided updates on the overdue export rebate payments, confirming that settlements have been made up to January 2023. He announced that a new program would commence on July 1, 2024, with preliminary estimates for rebates around LE 60 billion.

The prime minister stated that the minister of finance has received cabinet approval for payments to be made over two to three years to all eligible parties.

This year is challenging due to external circumstances, but the state will increase the budget for export rebates to meet expectations, Madbouly stated, emphasizing the importance of timely disbursements within the same year.

He also highlighted the government's commitment to managing both domestic and external debt, noting that 2024 was the toughest regarding debt repayments. However, the state has achieved success in this regard.

“We are not working in normal conditions, and inflation rates in many countries have increased,” Madbouly said. He expressed confidence with the state’s ability to overcome many of the current challenges during 2025.

Regarding gas supply, Madbouly indicated that production is expected to gradually return to pre-crisis levels, enabling the country to meet current demands and achieve expansions in 2025.

The prime minister underscored the government's focus on expanding industries that add real value to the economy.

PRIORITIZING TOURISM

During the meeting, renowned businessman Hisham Talaat Mustafa suggested the formation of specialized groups to work alongside the Cabinet in various sectors.

Madbouly emphasized the priority to implement this proposal on the tourism sector due to its rapid potential for generating foreign currency.

He revealed plans for two major projects aimed at doubling the number of hotel rooms near the Giza Plateau, the Grand Egyptian Museum, and the downtown area, inviting business leaders to discuss maximizing the benefits of these prime locations.

Meanwhile, Madbouly addressed concerns about challenging interest rates, with this issue linked to various matters, most notably inflation.

Madbouly acknowledged these challenges but pointed out that the tourism sector is projected to welcome around 15.5 million tourists this year, with a goal of reaching 18 million next year.

He emphasized aims for tourism revenues to exceed the usual range of $20-$22 billion, which represents the dollar deficit in the country. Madbouly said he expects growth in the tourism sector this year to be around 10 to 11%, with aspirations to raise that figure to 15% in the coming year.