Egypt Advances Plans to Privatize Airport Management

The Egyptian government is nearing a deal with the International Finance Corporation (IFC) to involve the private sector in managing and operating 11 airports, with an agreement expected within two weeks, according to Civil Aviation Minister Sameh El-Hefny, as reported by Eqtisad Al-Sharq. The initiative’s first phase will begin with Hurghada Airport, followed by Sphinx Airport.

Global interest in the project has been strong, with some of Europe’s largest airport operators expressing interest. While specific companies were not named, Hassan Allam Holding and France’s Groupe ADP jointly submitted a bid in December to oversee Egypt’s airports.

Meanwhile, the IFC is conducting a comprehensive study on the privatization plan, set to be completed within six months. The study will cover all legal, financial, and technical aspects of airport management and operations.

The government first introduced the plan in November 2023, aiming to enhance services and increase state revenue by allowing private and international firms to manage the country’s airports.

Egypt’s aviation sector has been experiencing steady growth, with flight activity rising 29 percent in the first half of 2024 to reach 191,000 flights, compared to 148,000 in the same period in 2022. Passenger traffic has also surged by 43.5 percent, with 23.2 million travelers recorded in the first half of 2024, up from 16.1 million in the same period last year.