Watan-It seems that 2025 will witness a decisive move by the Egyptian government toward privatizing airports, a process that has remained uncertain over the past two years since the Cabinet announced its approval to offer some public airports for management and operation by international and local companies to ease the burden of their expenses on the state budget.
Sources within the Federation of Tourism Chambers, who participated in recent advisory meetings on economic and tourism committees held at the Cabinet and the Presidency, confirmed that airport privatization has become inevitable to alleviate the accumulated debts of the aviation sector and improve the efficiency of airports, which have severely deteriorated.
The sources expect a doubling of incoming travelers over the next five years, with airport privatization tied to financial facilitation through loans provided by the European Union amounting to €7.4 billion, disbursed to the government in installments until 2027, and linked to the public offerings program agreed upon with the International Monetary Fund.
Six Offers from European Companies
The sources told “Al-Araby Al-Jadeed” that the government has received six offers, mostly from European companies, negotiating to manage some major airports, with a condition that the government adheres to a timetable for the tendering and assignment process within the current year.
In late December 2024, the Cabinet announced that a French-Egyptian consortium would hold consultations with the Ministry of Civil Aviation in the coming weeks to establish a clear vision regarding the government’s plan to offer Egyptian airports to international and local investors. This includes Cairo International Airport, Sphinx Airport west of the capital, Alamein Airport on the North Coast, Sharm El-Sheikh Airport in Sinai, and Hurghada Airport on the Red Sea.
The Cabinet confirmed in its statement that the government had received an offer from a Greek group and another from the French Airports Authority, in partnership with Hassan Allam Holding, to manage and operate Egyptian airports. The offer includes increasing the capacity of the airports, enhancing passenger and cargo movements, and improving operational efficiency.
The government revealed that the first phase of private sector management would involve five airports, followed by Luxor and Aswan airports, given their high passenger numbers and significant role in hosting international tourism. The government also confirmed plans to extend the experiment to 20 airports fully owned by the Ministry of Civil Aviation, as well as the new Administrative Capital Airport and airports co-managed with the Air Force, such as Marsa Matruh, Siwa, Abu Rudeis, and Arish in Sinai.
Concerns Over Airport Privatization
The Cabinet’s announcement of its plan to offer all airports in early December caused a shock among political forces, most of whom opposed the statement, fearing that foreign supervision of airport management could negatively affect national security and facilitate smuggling operations involving resources and individuals. However, the decision was widely welcomed by business and tourism sectors.
Risks of Privatizing Airport Management
Former President of the Federation of Tourism Chambers, Elhamy El-Zayat, stressed the need for the government to expedite the privatization of airport management, stating to “Al-Araby Al-Jadeed” that airports have become gateways damaging Egypt’s tourism reputation and an unfavorable impression for foreigners wishing to understand the country’s conditions.
El-Zayat noted that despite billions of dollars spent on modernizing airports from the state budget, they do not match the standards of modernity and cleanliness seen in major airports regionally and globally. Instead, they continue to operate in a traditional manner that reduces airports to mere entry and exit points, while modern airports have evolved into integrated tourist cities offering full services, where travelers can spend several days.
El-Zayat’s views contrast with concerns raised by political forces about the risks of airport privatization on national security, citing numerous officially documented cases of smuggling Egyptian antiquities, money, drugs, and goods through airports. They warn that relinquishing control over airports could turn them into wide-open windows for smuggling under unregulated private sector dominance.
The government aims to implement the first phase of privatizing airports by the end of 2026, preceded by a period of receiving offers from international specialized companies. It seeks to accelerate the process of offering airport management before the end of June 2025, as part of a broader privatization package to sell Bank of Cairo and several public companies, targeting $2.5 billion in sales revenue by the end of the 2024-2025 fiscal year.
Regulations to Protect Travelers in Egypt
Finance and investment expert Wael El-Nahhas called on the government to establish regulations to protect travelers from sudden financial burdens on services, such as increased airport fees, ticket prices, and shipping costs. He cited the lack of public oversight on pricing, in the absence of civil society institutions, as a cause of uncontrolled price hikes by both public and private companies, placing additional financial pressures on citizens.
Investment expert Hassan El-Sady supports the state’s direction toward privatizing airport management but warns against rushing the process to implement it across all public airports at once. El-Sady suggested that the government should start with one or a few airports in an experimental phase, limiting privatization to management without transferring ownership, and ensuring all services remain subject to security oversight to avoid conflicts between privatization and national security.
El-Sady emphasized that privatizing airport management would improve service quality for travelers and enhance operational efficiency. He noted that the significant funds allocated to building many airports through domestic and foreign loans could only be recovered by developing management and transforming these facilities into comprehensive projects with shopping centers, healthcare services, hotels, and recreational areas serving both travelers and visitors.
Diverging Management Responsibilities
Several official entities currently share responsibility for managing airport services, including special services for VIPs provided by the Civil Aviation Authority, military facilities for army personnel and their families, and numerous companies managing passenger transport, cleaning, and commercial services.
Civil Aviation Minister Sameh Al-Hefny has defended the government’s plan, clarifying in multiple statements that assigning management and operations to private companies does not mean transferring ownership of the facilities. All airports will remain under Egyptian sovereignty, with privatization limited to commercial activities within the airports. The ministry hopes that this approach will attract major international aviation companies to make Egypt a central hub for global cargo and passenger traffic, similar to Dubai and Istanbul.
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