EGYPT Law and Practice Contributed by: Nadia Abdallah, Zahra Ashraf, Beshoy Mounir and Yasmine Attia, Matouk Bassiouny & Hennawy
Matouk Bassiouny & Hennawy 12 Mohamed Ali Genah Garden City
Cairo Egypt
Tel: +(202) 2796 2042 Fax: +(202) 2795 4221
Email: info@matoukbassiouny.com Web: www.matoukbassiouny.com
1. Market Trends 1.1 Energy and Infrastructure M&A Market Local factors have had a direct positive impact on foreign currency availability, such as the enactment of Law No 170 of 2025 regulating the state’s ownership and participation in companies, pursuant to which a “State Ownership Policy Document” shall be issued by the Prime Minister setting out rules approved by the Cabinet, aimed at establishing a comprehensive policy for governing the state’s presence in economic activity in accordance with determined criteria, regu- lating the mechanisms for divestment from certain sectors, and strengthening the role of the private sec- tor in achieving economic development. Further contributing factors include the decision of the Central Bank of Egypt (CBE) to devalue the Egyptian pound in March 2024 and the government’s heavy investments in energy and infrastructure projects, par- ticularly transport and logistics and sovereign invest- ments, including the transaction concluded with the government of Abu Dhabi’s sovereign fund in relation to Ras El Hekma. Prior to these measures, challenges surrounding the conversion and repatriation of profits had adversely affected M&A appetite. There are also positive sectoral developments, par- ticularly within the power industry. Additional mitigat- ing factors include the government’s policy to divest significant power generation assets, coupled with the issuance of P2P regulations by the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA), marking the introduction of the first phase of a competitive power market.
1.2 Energy and Infrastructure Trends In line with Egypt’s ambition to position itself as a regional energy hub, the Prime Minister affirmed that the renewable energy sector continues to receive sig- nificant attention from the Egyptian state due to its vital role in ensuring the availability and accessibility of electric power to meet developmental and con- sumption needs. A major national priority has been the development of renewable energy projects, par- ticularly solar and wind, in line with Egypt’s Integrat- ed Sustainable Energy Strategy (ISES) 2035, which originally set a target of generating 42% of electric- ity from renewable sources by 2035. In parallel, the government continues to encourage investments in upgrading ports, transportation, and logistics infra- structure to support the country’s broader economic and energy objectives. 1.3 Access to the Energy and Infrastructure M&A Market Investors access Egypt’s energy and infrastructure M&A market mainly through direct investments and partnerships with financial institutions. Key investors include international energy companies, sovereign wealth funds, private sector developers, and private equity funds. This diversity reflects strong interest in renewable energy and sustainable infrastructure pro- jects. 1.4 Energy and Infrastructure Projects Major projects in the energy sector are ongoing including wind and solar power plants as well as green hydrogen projects. Since the issuance of the Renew- able Energy Law No 203 of 2014, the private sector has been encouraged to play a role in the country’s
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