(Ecofin Agency) - In line with an economic reform program it has submitted to the IMF, the Egyptian government will gradually exit the productive sector. In exchange, it will get a $3 billion aid package from the Fund.

Speaking at a press conference on July 11, Prime Minister Mostafa Madbouly announced that the Egyptian government earned $1.9 billion from selling its stakes in several companies. He detailed that $1.65 billion was obtained in US dollars, while $250 million was acquired in Egyptian pounds. According to the official, proceeds of stake sales will be added to the country's foreign currency reserves and support private enterprises in various sectors.

Meanwhile, Minister of Planning and Economic Development Hala El-Said specified that the government sold minority stakes of 25 to 30% in state-owned companies. This includes Egyptian Ethylene and Derivatives Company, Egyptian Drilling Company, and Egyptian Linear Alkyl Benzene Company (ELAB). They were sold to Abu Dhabi Development Holding Company (ADQ), an Emirati investment fund, for $800 million.

El-Said also disclosed that a consortium led by Arab Company for Hotels and Tourism Investment, a subsidiary of local conglomerate Talaat Moustafa Group (TMG), acquired a 37% stake in the hotel management company Holding Company for Tourism and Hotels for $700 million. The latter owns and operates seven hotels in Egypt, namely Cairo Marriott, Aswan Cataract, Haram Mena House, Luxor Winter Palace, Alexandria Cecil, Movenpick Aswan, and Elephantine Aswan.

Back in February, this year, the government announced the sale of state stakes in 32 companies to generate budgetary resources and revive an economy hurt by various external shocks. The move would help address Egypt’s funding needs, projected at $19 billion and $22.5 billion in 2023 and 2024, respectively, as reported by Fitch Ratings.

Approved by the IMF, the economic reform program aligns with the government's strategic objective of reducing state involvement in non-strategic sectors, encouraging private investment, and increasing the private sector's contribution to the economy to 65% by 2025.