Egypt is moving forward with plans to upgrade 11 airports through public-private partnerships, with support from the International Finance Corporation (IFC), the private sector arm of the World Bank. The initiative aims to enhance airport infrastructure, improve passenger services, and boost connectivity while reducing the financial burden on the state.
Under the partnership, the IFC will serve as an advisor to Egypt’s Ministry of Civil Aviation (MoCA), helping design a strategy for engaging private sector partners in airport operations and development.
The first phase of the plan will focus on Hurghada International Airport, Egypt’s second-busiest airport, where IFC will act as the lead transaction advisor. A competitive tender will be launched to select a private partner responsible for upgrading, maintaining, and operating the airport, while ownership remains with the Egyptian Holding Company for Airports and Air Navigation (EHCAAN).
Aside from Hurghada, the IFC will assess the best approach for private sector involvement in 10 other airports, including Sharm El-Sheikh, Luxor, Aswan, and Borg El-Arab. The strategy may involve bundling multiple airports into a single investment package to attract private investors.
The move is part of Egypt’s broader efforts to increase private sector participation in key economic sectors, aligning with its Asset Monetization Programme, which aims to attract private investment by offering stakes in state-owned assets to enhance efficiency and generate revenue.
It also aligns with Egypt’s commitments under the Extended Fund Facility (EFF) loan agreement with the International Monetary Fund (IMF).
According to the Egyptian Holding Company for Airports and Air Navigation (EHCAAN), Egypt’s airports handled over 50 million passengers on nearly 400,000 flights in 2024. Officials say greater private sector involvement will improve efficiency, enhance services, and drive economic growth by strengthening Egypt’s position as a regional hub for travel and trade.
Prime Minister Mostafa Madbouly emphasized that the agreement builds on Egypt’s ongoing collaboration with the IFC to attract private investment across multiple sectors. Minister of Civil Aviation Sameh Elhefny added that the partnership marks a crucial step toward improving service quality and operational efficiency in the aviation sector.
The IFC has been active in Egypt since 1975, providing investments and advisory support in sectors such as renewable energy, fintech, and infrastructure.
