The Cabinet announced in a statement Thursday an agreement to transfer ownership of a stake in Wataniya fuel stations to the TAQA Arabia company. This long-anticipated privatization deal was signed by the military’s commercial arm, the National Service Projects Organization (NSPO).
The transaction follows repeated warnings from the International Monetary Fund over Cairo’s slow divestment of state and military assets amid severe macroeconomic pressures exacerbated by the regional conflict with Iran.
Under the terms of the agreement, management and operational control of 172 Wataniya stations will shift to Quick Fuel, a newly established petroleum distribution venture, with TAQA Arabia securing an immediate 10% stake in the entity.
TAQA Arabia maintains an option to acquire an additional 15% of Quick Fuel when the company lists on the Egyptian Exchange, while the military’s National Service Projects Organization retains a 20% cross-holding in TAQA Arabia.
The Minister of Investment and External Trade, Mohamed Farid Saleh, said the agreement is a step consistent with activating the State Ownership Policy Document. Saleh, who also chairs the Sovereign Fund of Egypt, added that the government remains serious about implementing its public-offerings program to expand the ownership base of state companies and achieve private sector-led economic growth.
The deal comes a few days after the signing of the concession to operate the Gabal El-Zeit renewable energy station in favor of the Emirati company Alcazar, signaling a rapid acceleration in the state’s divestment program.
A government source familiar with the privatization portfolio told Al Manassa on condition of anonymity that the state plans to offload stakes in five or six military-affiliated enterprises over the coming period.
The government is currently restructuring Chillout, another armed forces-backed gas station chain, ahead of a planned stock market listing or a direct sale to a strategic domestic or foreign investor, the source added.
Emirati and Saudi investors have expressed formal interest in acquiring the Chillout network, though the compilation of asset evaluations and regulatory documentation remains ongoing, according to the source.
TAQA Arabia is a subsidiary of Qalaa Holdings, which says it is the largest private sector company in the field of energy distribution in Egypt. According to the Asharq website, TAQA Arabia has been seeking for more than two years to acquire a stake in Wataniya.
