Abu Dhabi plans to buy stake in Egyptian military company

Bloomberg cited sources as saying that the Abu Dhabi National Oil Company (ADNOC) is among the bidders to buy the largest stake in one of the first Egyptian companies owned by the military and offer it to investors.

According to the sources, ADNOC will participate in the Egyptian sovereign wealth fund, giving both sides full ownership of the National Petroleum Company, a fuel distribution company affiliated with the Egyptian military.

Energy Arabia, a private Egyptian company, has also expressed interest in the larger share and partnership with the fund, according to sources who asked not to be identified.

Egyptian Sovereign Fund CEO Ayman Soliman said Wataniya had “attracted a lot of investors”, but declined to identify them.

ADNOC, which is owned by the government of Abu Dhabi, declined to comment. As well as an Arab energy company.

And in October 2019, Egyptian President Abdel Fattah El-Sisi said military-owned companies should be allowed to list their shares on the stock exchange, along with other state-owned companies that are preparing for privatization.

Bloomberg says the desire to buy patriotism could be a jumping off point for private sector interest in a part of the military economy that Sisi believes could be more open to the public.

Wataniya has more than 200 gas stations and is one of two military-controlled companies, which Egypt announced this month for sale.

Egypt plans to offer stakes of up to 100% to around 10 companies belonging to the National Service Projects Organization, affiliated with the Ministry of Defense.

The sovereign wealth fund assists the National Service Projects Organization in the selection of assets and their promotion to investors, and perhaps by participating in their placement by obtaining minority stakes.

According to Bloomberg, the National Company for the Production and Bottling of Natural Water (Safi) has been identified as one of the companies offered for the offer in the near future.