The Egyptian government is speeding up the implementation process of its initial public offering (IPO) program, introduced years ago as part of efforts to address an economic crisis. This program, which includes divestment of several state-owned assets, is a key requirement under the country’s loan agreement with the International Monetary Fund (IMF).

As part of this IPO program, the government has planned to sell stakes in several banks. Recently, after years of unsuccessful attempts to sell the United Bank of Egypt to a strategic investor, the Central Bank of Egypt (CBE) shifted its approach, announcing plans to list United Bank on the Egyptian Exchange (EGX).

In this Factsheet, we will highlight the progress in Egypt’s sale plan of its stake in some banks under the IPO program. 

• Egypt has 705 companies fully or partially owned by 33 public entities, including 84 companies in the financial sector. The CBE owns stakes in four of these financial companies and banks.
• In March 2022, the state-owned National Bank of Egypt (NBE) sold most of its shares in the Commercial International Bank (CIB) to Alpha Oryx Limited, a subsidiary of ADQ, for $847.1 million.
• Egypt announced in February 2023 that it will offer 35 publicly owned companies to private investors, including three banks: the Arab African International Bank, the United Bank, and Banque du Caire.
• The government initially planned to offer stakes in the United Bank by the fourth quarter (Q4) in 2023 as part of the third phase of the IPO program. This phase included selling stakes in six companies, banks, and assets for $5 billion.
• The CBE owns 99.9% of the United Bank, established in 2006 through the merger of the Egyptian United Bank, the Nile Bank, and the Islamic Bank for Development and Investment.
• The CBE first announced plans to sell United Bank in 2017, but these were delayed due to the COVID-19 pandemic. Following the launch of the IPO program, renewed efforts to sell the bank, including a recent potential deal with the Saudi Public Investment Fund (PIF), were unsuccessful.
• Qatar Islamic Bank (QIB) withdrew from the bid to acquire United Bank after failing to reach a valuation agreement with the CBE. Both QIB and Kuwait Finance House (KFH) completed due diligence in December 2023, though no official offer was submitted by KFH.
• Finally, the CBE shifted to a new strategy and decided to offer shares in the United Bank on the EGX. Completion of the offering is expected to take place before the end of Q1 2025.
• The United Bank currently operates 68 branches and 225 ATMs, with advanced digital platforms. As of June 2024, the bank's total assets reached EGP 106 billion.

By: Amina Hussein

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