Egypt to privatize airport management in 2025 as tourism grows
As Egypt's tourism surges toward a target of 18 million visitors, Terminal 3 at Cairo International Airport reflects both the country's ancient heritage and its modern ambitions
Egypt is set to launch a major initiative next year, opening its airports to private sector management and operation, as part of the government’s broader economic reforms. The decision was announced following cabinet approval to partner with the International Finance Corporation (IFC), a World Bank subsidiary, which will serve as the government’s strategic advisor throughout the privatization process.
Mohamed El-Homsani, the Cabinet’s Spokesperson, confirmed that the IFC will first conduct necessary studies before proceeding with privatization efforts and negotiations with interested companies. The initiative encompasses Egypt’s network of 15 international airports and two domestic airports, which are currently managed by the state-owned Holding Company for Airports and Air Navigation.
Prime Minister Mostafa Madbouly, during a meeting with prominent local investors, reaffirmed the government’s commitment to this privatization initiative. He suggested that this move should coincide with increased private sector involvement in establishing airlines through government partnerships, aimed at expanding Egypt’s aviation fleet.
The initiative comes at a time of significant growth in Egypt’s aviation sector. The first half of this year saw a 29% increase in flights to 191,000, compared to 148,000 in the same period of 2022. Passenger numbers showed even more substantial growth, rising by 43.5% to 23.2 million from 16.1 million the previous year.
The government is particularly optimistic about the tourism sector’s potential. According to Madbouly, Egypt expects to welcome approximately 15.5 million tourists this year, with an ambitious target of 18 million visitors for the following year. The sector is projected to experience growth of 10-11% this year, with aims to increase this to 15% in the coming year. The government hopes to exceed the typical tourism revenue range of US$20-22 billion, which currently represents the country’s dollar deficit.
This privatization initiative aligns with Egypt’s broader economic reforms and development plans, including major projects aimed at expanding hotel capacity near key tourist attractions such as the Giza Plateau and the Grand Egyptian Museum.
.JPG?&resize.width=322&resize.height=483)
-8.jpg?&resize.width=322&resize.height=483)
