Egypt to Privatize Airport Management

Egypt’s Ministry of Civil Aviation has announced plans to outsource the management and operation of its airports to the private sector, aligning with the government’s broader efforts to boost private sector involvement in the economy.

According to a statement from the ministry, the private sector is deemed “best positioned to manage and operate airport facilities efficiently.” This move is expected to attract more investment into the aviation sector, maximizing economic returns. The ministry emphasized that Egyptian airports will remain fully state-owned and under Egyptian sovereignty, dismissing any reports of sales to foreign entities.

The strategy includes upgrading infrastructure, implementing advanced security systems, expanding airline networks, and supporting low-cost carriers to improve airport efficiency and capacity.

This initiative is part of a broader government plan, outlined in the State Ownership Policy Document approved by President Abdel-Fattah Al Sisi in late 2022, which aims to double the private sector’s contribution to the economy to 65% within a few years.

Prime Minister Mostafa Madbouly discussed this privatization plan with representatives from over 20 transportation, logistics, and maritime navigation companies last year. The country’s airports saw a 28% surge in passenger traffic in 2023, with nearly 47 million passengers and 365,000 flights. Cairo International Airport, the largest hub, served over 26 million passengers through 198,000 flights.

Hurghada and Sharm El-Sheikh airports welcomed 8.7 million and 5.9 million passengers, respectively, while Borg El Arab International Airport handled over two million travelers. Additionally, Egypt attracted a record 7.069 million tourists between January and June 2024, up slightly from 7.062 million in the same period last year.

About The Author

Editor

See author's posts