CAIRO – 16 May 2024: The Egyptian government has granted approval to a draft law to regulate the ownership of fully-owned companies by the state, according to a statement issued by the Cabinet.
The draft law encompasses a range of provisions that pertain to companies owned either entirely by units of the state’s administrative apparatus or by public legal entities. It also includes provisions for companies that are jointly owned by state units.
The draft law incorporates several elements that aim to achieve the objectives outlined in the state ownership policy document.
These elements primarily focus on enhancing governance in economic activities, directing investments towards crucial public sectors, attracting both domestic and foreign investments, promoting competition, and ensuring equitable market practices.
Moreover, this legislation seeks to advance financial markets, introduce new trading sectors, optimize the performance of state-owned companies, and maximize their investments.
To facilitate these efforts, the cabinet has also approved the creation of a dedicated unit called the State-Owned Companies Inventory and Follow-up Unit.
The unit will be led by a CEO with expertise in investment, project management, and other areas, supported by a team of specialists.
The primary responsibilities of this unit will involve developing regulatory programs for state-owned or state-contributed companies, ensuring adherence to specified timelines and targets, and supervising the implementation of these programs within the broader policy framework.
Additionally, the unit will actively encourage private sector involvement in economic activities by proposing legal frameworks and policies that align with international governance standards.
Furthermore, the unit will maintain a comprehensive database of state-owned companies, identify potential candidates for divestment or capital expansion, and oversee mergers or acquisitions aimed at reinforcing market capitalization.
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