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Advised by the International Finance Corporation (IFC), part of the World Bank Group, the Ministry of Civil Aviation aims to commercialise regional airports while retaining state ownership.
Egyptian Minister of Civil Aviation Dr Sameh El-Hefny called the partnership “a crucial step towards improved service quality and operational efficiency in the civil aviation sector.
” While IFC Vice President for Africa Sérgio Pimenta added that the initiative will “help attract world-class investors to deliver modern, efficient airports that strengthen Egypt’s position as a global travel and trade hub.”
The Egyptian government will keep full ownership of all airport land and infrastructure, while private consortia handle and commercialise terminal operations under long-term agreements.
Aviation’s Role in Vision 2030
This plan aligns with Egypt Vision 2030, which aims to expand private sector involvement, bring in foreign investment, and reach 30 million annual tourist arrivals.
Aviation is a key economic driver, generating over 5% of Egypt’s Gross Domestic Product (GDP) which is about USD 21.1 bn, and supports 1.4m direct and indirect jobs.
Tourism contributes approximately 12% of GDP. To meet IMF targets and manage economic pressures, Egypt is privatising airport management to increase passenger capacity and boost non-aeronautical foreign revenue without adding to the national debt.
The structural hierarchy of Egypt’s airport PPP programme. Chart: Aljaweea, source: International Finance Corporation (IFC).
Egypt’s PPP Aviation Hierarchy Explained
The project includes several entities from Egypt’s civil aviation sector:
Ministry of Civil Aviation (MoCA): A cabinet-level government entity responsible for crafting high-level national aviation strategy, representing the state globally. Sets national policy, negotiates air travel rights, and enforces regulations.
Egyptian Holding Company for Airports and Air Navigation (EHCAAN): State entity holding airport facilities that oversees a total of 20 airports.
Under the IFC-guided PPP framework, contractors will run EAC facilities and generate revenue from duty-free shops, parking, ground handling, and passenger service fees, while EHCAAN retains full ownership of property and airside assets.
Hurghada Airport: The PPP Pilot
Hurghada International Airport (HRG|HEGN) is the flagship pilot project. Built as a military base in the 1960s, it became a civilian airport in 1977 and is now the main entry point to the Red Sea Riviera.
HRG’s main facility is a USD 335m Terminal built in 2014 (92,000 sq m). With a 4 km runway (16L/34R) for large aircraft like the Boeing 747-8, Boeing 777, Boeing 787, Airbus A330, and Airbus A380, HRG handled 11.4m passengers in 2025, making it Egypt’s second-busiest airport.
Passengers arrive outside the terminal building at Hurghada International Airport. Photo: Mila Demidova/Shutterstock.com.
According to Al Manassa around 70 consortia showed interest in the project; however, all the initial round of bids were rejected for being too low, undervaluing the airport’s projected USD 800m annual revenue.
Egypt is reviewing updated offers from Gulf investors in the UAE, Saudi Arabia, and Qatar. Winning the tender would allow these investors to earn returns from Egypt’s established tourism market while supporting their own domestic Red Sea mega projects.
The Hurghada tender will set the financial and structural standards for the remaining ten airports.
Development Airports:
Following Hurghada, the programme focuses on two expanded regional hubs targeting specific travel markets.
Key specifications and growth targets for Sphinx and Al Alamein regional airport hubs. Chart: Aljaweea, source: International Finance Corporation and official sources.
Sphinx International Airport (SPX|HESX): Gateway to the Pyramids
Located west of Cairo, SPX was expanded between December 2020 and late 2022 from 4,500 to 24,000 sq m, increasing its capacity to 1.2m passengers annually.
Low-cost carriers like Wizz Air and easyJet use it for European routes, and domestic connections to Red Sea resorts (Sharm El Sheikh, Hurghada) and Upper Egypt (Luxor, Aswan) use it for the ” one-day ” tourist model, allowing tourists to bypass central Cairo’s city traffic.
SPX also offers dual-use potential near the Cairo-Alexandria Desert Road. In late 2020, Saudi and Kuwaiti investors submitted proposals to build a cargo facility at the site.
With Saudi Arabia planning to escalate its total investments in Egypt to around USD 50bn across Egypt’s public and private sectors (the largest source of Arab foreign direct investment in the country) and Kuwait contributing USD 16–19bn, Gulf investment supports integrating SPX into regional trade routes, helping local agricultural and industrial exports bypass Cairo congestion, speeding up international shipping times.
El Alamein International Airport (DBB|HEAL): The North Coast Riviera
Located on the Mediterranean coast, DBB serves Abu Dhabi ADQ’s USD 35bn Ras El Hekma development. Built in 1999 by Egypt’s KATO Investment under a Build-Operate-Transfer (BOT) model, with a capacity of 1.2m passengers, it saw limited seasonal traffic for over ten years.
Without scheduled flights until August 2021, DBB relied on charters and private jets until commercial services officially restarted in March 2023 under Egypt’s 2052 Urban Development Plan.
With a 3,499-metre Code-F runway, DBB saw a 57% year-on-year passenger increase in 2026, serving 266,600 passengers. Carriers such as Etihad Airways, flydubai, and Saudia now link the North Coast to Gulf hubs, driven by regional real estate investments, balancing high-yield GCC routes with European holiday charters.
Hosting the second El Alamein International Airshow (EIAS 2026) from 8–10 September 2026 highlights DBB’s role in aviation diplomacy and regional aerospace trade. Supported by the Egyptian government, the event features over 200 exhibitors (including Airbus and Dassault), flight display teams, and 12,000 visitors from more than 50 countries.
Egypt’s Regional Rollout Plan
Beyond HRG, SPX, and DBB, the Ministry of Civil Aviation and the IFC have outlined plans for eight more airports:
Sharm El Sheikh International Airport: Prioritised for immediate tendering due to high tourist traffic and updated terminals.
Borg El Arab International Airport: Next in line to support Alexandria’s regional and industrial transport.
Luxor International Airport: Planned for Upper Egypt’s cultural travel market and Nile cruises.
Aswan International Airport: Paired with Luxor to serve southern heritage sites.
Sohag International Airport: Targeted for domestic flights and regional travel in Upper Egypt.
Assiut Airport: Planned for domestic routes and regional passenger expansion.
Abu Simbel Airport: Included to serve direct tourist trips to historic southern locations.
Marsa Matruh Airport: Final entry in the pipeline, supporting Mediterranean coast development.
By handing management to private operators, Egypt aims to upgrade and modernise its aviation infrastructure while retaining ownership of core aviation assets. While a completion date for the entire 11-airport programme remains unspecified, this phased rollout firmly aligns with Egypt Vision 2030, with the 2026 Hurghada tender setting the model, pace and regulatory blueprint for all future projects.
Will the PPP Model Transform Egypt?
If successful, the 11-airport PPP programme will undoubtedly improve Egypt’s economy, turning the nation’s aviation sector into one of the most dynamic and competitive in the region. By utilising private-sector operations while maintaining national assets, Egypt can unlock the full commercial potential of the country’s tourism sector and increase foreign currency earnings. This global connectivity framework will unlock growth for coastal developments and cultural destinations, driving long-term economic expansion.
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