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- October 13, 202617°
- BIST10012,151-0.94%
- USD49.34+0.24%
- EUR55.21-0.01%
- GOLD4,186.60-0.10%
- INTEREST37.00%-1.00
- BITCOIN81,772+0.02%
- October 13, 202617°
Egypt Plans to Transition to Cash Subsidy System and Freeze Fuel Prices by End of 2026
Egypt aims to transition to a cash subsidy system and freeze fuel prices by the end of 2026. Economic reforms and privatization plans det...
Egypt's Deputy Prime Minister for Economic Affairs Hussein Eissa announced that his country plans to transition from the current in-kind subsidy system to a cash support system by the end of 2026. Speaking at the American Chamber of Commerce's annual meeting held in Cairo, Eissa also stated that there will be no increase in fuel prices until the end of the 2026 fiscal year. It was expressed that this decision aims to provide confidence to citizens and markets against global economic uncertainties and fluctuations in international energy prices.
Eissa revealed that a comprehensive economic reform program is being worked on for the restructuring of state-owned economic institutions and companies in the public sector. It is planned to transfer ten state-owned companies, including Banque du Caire and two companies affiliated with the Egyptian Armed Forces, to the private sector by the end of 2026. This process will be carried out through public offerings on the Egyptian Stock Exchange and strategic investor partnerships.
The purpose of the reform was stated as revitalizing the capital market, increasing the financial resources of public companies, enhancing their competitiveness, and promoting domestic and foreign investments. Additionally, the updated document determining the state's ownership policy will be published by the end of June. This document will outline the roadmap for which sectors the state will maintain or reduce its presence. Eissa said that the restructuring of six major economic institutions such as the National Food Authority, SME Development Agency, and Suez Canal Authority is targeted to be completed by the end of the year.
These steps aim to improve the administrative and financial performance of the mentioned institutions and strengthen their development roles. After the evaluation of the first phase of restructuring, a new phase will begin next year. The reform process is not limited to financial regulations but also includes upgrading management systems, strengthening governance standards, and increasing operational efficiency. Egypt's public business sector currently consists of six holding companies and approximately 66 affiliated companies, and the process of going public continues with determination.
The state has adopted a clear approach separating ownership and management, Eissa stated, emphasizing that the success of companies depends more on the effectiveness of their management and their capacity to provide quality services to citizens rather than whether they are publicly or privately owned. In the financial field, the government is trying to reduce domestic debt levels and is working on various innovative solutions to support financial stability and alleviate the burden of public debt.
Eissa noted that economic policy aims to balance economic efficiency with social and development priorities, highlighting the importance of this balance especially in strategic sectors that directly affect citizens' daily lives. The overall goal was expressed as building a more competitive economy that attracts investment and ensures sustainable growth. These statements reaffirmed the determination to accelerate structural reforms, strengthen the role of the private sector in the economy, and improve the investment environment.
The meeting was attended by American Chamber of Commerce President Omar Mohanna as well as various ministers, investors, and business leaders.
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