Egypt reviews financial statements of 198 state-owned companies to assess profitability
Updated 10/7/2024 4:02:00 AM
Arab Finance: The Egyptian government is currently reviewing the financial statements of 198 state-owned companies to evaluate their profitability, Al Arabiya Business reported, citing a newly released document on the status of government-owned enterprises.
This survey is part of the state's initiative to partner with the private sector under the framework of the State Ownership Policy Document.
Preliminary results from the survey indicate that 373 out of 709 state-owned companies are profitable, while 138 companies reported losses.
The data shows that the majority of profitable companies have an authorized capital of EGP 500 million or more, making up 34% of all government-owned enterprises.
A significant portion of these profitable companies, totaling 183, fall under the Ministry of Public Business Sector.
In addition to large firms, the government owns 161 companies with capital between EGP 100 million and 500 million, representing 22.7% of its holdings.
Other categories include 48 companies with capital between EGP 50 million and 100 million, 56 companies with capital ranging from EGP 10 million to 50 million, and 20 companies with less than EGP 20 million in capital.
The review also highlights the listing status of state-owned enterprises on the Egyptian Exchange (EGX), with 59 companies, or 8.3% of all government-owned firms, currently listed.
These companies operate across 18 sectors, with manufacturing industries leading with 200 companies, followed by administrative and support services with 91 companies and non-banking financial services with 85.
The distribution of ownership across ministries is diverse, with 309 companies owned by the Ministry of Public Business Sector, 88 by the Ministry of Planning and Economic Development, and 51 by the Ministry of Supply and Foreign Trade.
Other major holders include the Ministry of Transport 46 companies, Ministry of Housing 44, Ministry of Civil Aviation 40, and Ministry of Military Production 39.
The review process will help the government determine which companies may be suitable for privatization or restructuring as it seeks to increase private sector participation in the economy.
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