The proposed sale of Cairo Bank, one of Egypt’s largest state-owned financial institutions, to the UAE’s Emirates NBD has triggered fierce opposition from political figures.
The deal, valued at over a billion dollars, has raised concerns over its potential impact on national security and economic sovereignty, with critics questioning both its valuation and the choice of a UAE-based investor.
Founded in 1952 under King Farouk’s reign and nationalised in 1961, Cairo Bank is a crucial player in Egypt’s banking sector. It has 248 branches and 1,640 ATMs across the country, making it the third-largest state bank by assets.
Despite being 99 percent owned by Bank Misr, Egypt’s second-largest state bank, Cairo Bank remains under government control, making its sale part of Egypt’s ongoing privatisation efforts under President Abdel Fattah Al-Sisi‘s economic reforms.
In February 2024, the Egyptian government announced that Cairo Bank, along with several other state banks, would either be listed on the stock exchange or sold to foreign investors.
However, the decision to sell it to Emirates NBD stirred widespread backlash. Critics argued that the proposed sale undervalues the bank, pointing out that the deal is worth a fraction of previous offers, such as a 2008 bid of $2.25 billion from the Greek National Bank.
Egyptian Magdy Hamdan Mousa of the Conservative Party launched a campaign against the sale. He questioned why the government is rushing to sell an asset of such importance at what many see as a bargain price, comparing the deal to “a bankrupt merchant selling his assets for far less than they are worth”.
Former MP Talaat Khalil warned that the influx of UAE capital could undermine Egypt’s sovereignty with Emirati investments already in sectors like food, pharmaceuticals, ports, and airports.
Critics of the sale called for alternatives, such as opening Cairo Bank to public subscription or selling shares to Egyptian businessmen, to keep the bank under national control.
Experts also urged the Egyptian parliament to intervene and halt the sale to safeguard the bank’s strategic assets and ensure that Egypt’s economic interests remain protected.
