Egypt’s Ministry of Finance expects annual revenue at Hurghada International Airport to rise by nearly $300 million, bringing total projected income to about $800 million, following the airport’s transfer to private-sector management, a senior official told Al Manassa.
The official, speaking on condition of anonymity, said the increase will come from a mandatory development plan the private operator must execute under the agreement, in what marks Egypt’s first-ever public-private partnership for a civilian airport.
The Ministry of Civil Aviation introduced the deal earlier this month as part of a broader privatization campaign. That program, a cornerstone of Egypt’s reform commitments to the International Monetary Fund, has faced mounting scrutiny over delays.
While official financial data for Hurghada airport remains undisclosed, press coverage suggests a surge in passenger numbers in 2025. Past reports classify the Red Sea hub, Egypt’s second-busiest, as a rare profit center, historically used by the state-owned Egyptian Airports Holding Company to offset deficits at other airports.
Under the privatization agreement, the winning company must renovate and expand core services. This includes departure and arrival terminals, retail and duty-free areas, digital infrastructure, VIP lounges, and transportation and parking, to meet international standards for tourist airports, the official explained to Al Manassa.
Revenue from commercial activities such as retail shops, food outlets, advertisements, and parking will be shared between the operator and the government. The contract includes a guaranteed minimum return for the public treasury to ensure stable fiscal inflows.
Daily airport operations, including ground services, terminal management, maintenance, and commercial oversight, will fall under the private operator’s control. However, the government will retain full regulatory authority over security, safety, and performance standards, the source added.
The Hurghada model is intended as a template for similar partnerships across 11 additional airports nationwide. The World Bank’s International Finance Corporation is advising Cairo on implementation and legal structuring.
Core aviation charges, including basic navigation and aeronautical fees, will remain state-regulated. The private operator will pay either a fixed concession fee or a percentage of revenues, depending on final contract terms.
Performance indicators, penalties for under-performance, and obligations for routine financial and operational reporting will be embedded in the partnership contract. Reports will be subject to external audit.
The IMF concluded its latest mission to Egypt last Friday to finalize approval of the fifth and sixth loan disbursements. Its reform agenda emphasizes limiting the state’s economic footprint and expanding private-sector leadership, targets Cairo continues to struggle to meet.
