All state-owned companies under the SFE? The Madbouly government is aiming to transfer the administration of all state-owned companies to the Sovereign Fund of Egypt (SFE) in order to boost their returns, Investment Minister Hassan El Khatib said during his participation in the Investopia 2025 conference in Abu Dhabi yesterday.

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You heard right — all of them: “I want to move the state-owned enterprises in batches to the [sovereign wealth] fund to manage, to maximize the return on, say, state assets,” El Khatib said.

The plan: SFE’s role will focus on attracting private players and potentially going public with the companies. “I see we have a lot of good companies. As we move them, get the private sector to run them, have the proper governance, partner with the private sector, list in some cases,” El Khatib said, “the perception of the [SFE] will be maximization of yield on the return value and the valuation.”

El Khatib has long advocated a balanced approach to state enterprises: El Khatib has made clear that his approach to state enterprises centers around maximizing returns — rather than divesting stakes for cash — ever since the SFE was moved under his control last year. El Khatib noted at the EnterpriseAM Finance Forum last year that he’s “not fixed on privatization,” explaining that he instead approaches the topic as “an investor.” El Khatib elaborated that instead of selling assets quickly and cheaply, he wants “to talk about maximizing their value and the returns we get for them, move them to a sovereign wealth fund, have them be run by the private sector, and monetize them to generate more value.”

Remember: El Khatib was appointed to head of the SFE in October, after Prime Minister Moustafa Madbouly issued a decision that places the fund under the control of whoever is heading the Investment Ministry. The move comes alongside efforts to better align the SFE with the objectives and actions of the cabinet by placing it more firmly under cabinet control, and to signal a change in approach from the SFE toward attracting investment from abroad.

Pulse check on the privatization program: The Madbouly government is looking to sell stakes in ten state-owned companies this year via private placements to strategic investors and stake sales on the EGX.

ALSO FROM EL KHATIB’S TIME IN UAE-

During his time in Abu Dhabi, El Khatib met with representatives from 50 multinational firms to present Egypt’s investment reforms, according to a statement. He outlined ongoing fiscal, monetary, and trade policy adjustments, along with state ownership reforms aimed at easing business operations and attracting foreign capital. Companies expressed interest in expanding into Egypt’s healthcare, retail, and industrial sectors.

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