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The government is moving to offload the management, operation, and service efficiency upgrades of 62 healthcare projects to the private sector, as it seeks to shift from state-led construction to private-led operation, a senior government official tells EnterpriseAM. The Health Ministry, in tandem with the Sovereign Fund of Egypt, has expanded its pipeline of private-participation prospects from just seven last year to 62 today.
The list includes Sheikh Zayed Specialized Hospital, New Alamein Hospital, and Galala Hospital, which is being repositioned as a medical tourism resort, the official tells us. The Agouza Hospital overlooking the Nile is also on the list, alongside a wide range of projects across multiple governorates.
Why it matters: The push comes as the FY 2025-26 healthcare budget is slated to reach EGP 617.9 bn, a 124.3% jump from four years ago, when the budget was EGP 275.5 bn in FY 2021-22. While the budget allocation looks sizable, debt servicing now consumes a significant portion of public spending. By inviting private operators to take over flagship assets through usufruct or management contracts, the government hopes to improve public healthcare services without adding more debt to the balance sheet.
The upcoming incentive package will be structured around a graduated model. Projects will qualify for higher levels of support based on the size of their USD-denominated financing, operational scale, ownership structure — whether usufruct or sale mechanisms — and job creation potential, the official tells us. The government is also expanding the use of the golden license to fast-track approvals for qualifying investments.
The incentives mix will combine time-bound tax and customs exemptions with land allocation in underserved areas through usufruct arrangements or public-private partnerships. Additional benefits will target projects that boost utilization rates at existing facilities or shorten the time needed to become operational.
Technology and sustainability will play a decisive role. Investors that localize advanced medical technologies or expand into underserved areas will gain preferential access to higher incentive tiers. Projects powered by clean energy and those geared toward medical tourism will also be prioritized, the source added.
