Egypt has implemented a tender that enables the management, operation, and development of Hurghada International Airport to private companies. The government is not simply outsourcing an airport; it is signalling a major shift in how Egypt intends to run transport infrastructure, attract investment, and position itself in the global aviation sector.
Hurghada, already Egypt’s second-busiest airport and a pillar of Red Sea tourism, is the testing ground for a new public–private model that could be replicated across 11 airports nationwide. Supported by the International Finance Corporation (IFC), the move blends private-sector efficiency with state ownership, anchoring a larger effort to modernise Egypt’s aviation landscape and expand its economic footprint.
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The Hurghada International Airport is the ideal starting point for this strategic shift. In 2024–2025, it handled approximately 10.5 million passengers, a 22% year-on-year increase, making it Egypt’s fastest-growing airport by traffic volume. As tourism rebounds and flight demand rises across the Red Sea region, capacity constraints have become more visible. Egypt’s Civil Aviation Ministry reports that airports nationwide handled 50 million+ passengers across nearly 400,000 flights in 2024, evidence of a system under increasing strain.
The aviation sector is undergoing its most significant transformation in decades, marked by strong traffic growth, rising operational efficiency, and major infrastructure upgrades. In 2024–2025, Egyptian airports handled more than 50 million passengers, with non-Cairo airports recording 22.097 million travellers, a 9% increase from 2023, while Cairo International alone served 27.7 million passengers. Flight movements rose 3% to 167,684, and Egypt climbed from 40th to 23rd globally in aviation efficiency. These improvements are driving the country toward ambitious targets of 72.2 million annual passenger capacity by 2025 and 110 million by 2030.
Alongside the numbers, a structural reboot is underway. The government is pursuing a $3.5 billion expansion of Cairo International Airport, renewing EgyptAir’s fleet with modern Airbus A350S and Boeing 737-8 MAX aircraft, and rolling out “green airport” initiatives centred on solar power and Sustainable Aviation Fuel. The Egyptian Civil Aviation Authority has also strengthened safety systems, scoring 87.3% in its latest ICAO audit. Together, these upgrades show that Egypt is not simply expanding terminals; it is rebuilding the entire aviation ecosystem through new governance models, stronger safety oversight, sustainability commitments, and a push for digitalisation and global competitiveness.
The economy gained around $406.57 billion in 2025, growing 4–5% thanks to rising private investment, a more stable foreign exchange environment, and expanding non-oil sectors such as tourism, ICT, logistics, and transport. The aviation sector underpins this growth, contributing over 5% of GDP (≈ $21.1 billion) and supporting 1.4 million jobs, while bolstering tourism, which itself accounts for roughly 12% of national output. Private aviation, though not separately quantified, is gaining influence through higher demand for charters from Gulf, European, and African travellers, growth in Red Sea luxury tourism, and increased business travel linked to the Suez Canal and industrial zones. The Hurghada tender formalises this trend, integrating private-sector expertise directly into airport management and infrastructure development.
Egypt’s aviation sector has evolved from full state control to strategic public–private collaboration. From the 1930s to 1970s, EgyptAir and airports were nationalised, managed under a Supreme Board of Civil Aviation, with the government controlling all operations. Between the 1980s and 2000s, the sector modernised through fleet expansions, the creation of the Egyptian Civil Aviation Authority (ECAA), and EgyptAir’s 2002 reorganisation as a commercially oriented state-owned holding. In the 2020s, a strategic pivot toward public–private partnerships emerged, formalised in the 2022 State Ownership Policy Document, which prioritised private involvement while retaining public ownership.
The Egyptian strategy centres on allowing private operators to manage airports more efficiently while the state retains full ownership, with Hurghada International Airport serving as the pilot for a broader programme covering 11 key airports. Guided by the International Finance Corporation (IFC), the initiative aims to attract leading global operators to improve operational efficiency, enhance commercial revenues, upgrade infrastructure, optimise costs, and elevate the passenger experience. Importantly, this is structured as a public–private partnership (PPP), not privatisation, designed to inject international expertise into Egypt’s state-owned aviation network.
Compared globally, Egypt’s approach bridges regional and international practices. Unlike Gulf leaders such as the UAE, Qatar, and Saudi Arabia, which have long embraced PPPs, Egypt maintains stricter public oversight while mirroring their efficiency goals. Compared to African peers like Ethiopia, Kenya, Rwanda, and South Africa, which largely retain state-run airports, Egypt is the continent’s most PPP-progressive aviation market. It also aligns with emerging-market benchmarks, such as Turkey and Brazil, demonstrating adherence to global best practices while positioning itself to attract foreign capital, boost connectivity, accelerate infrastructure upgrades, and enhance tourism competitiveness.
Despite its promise, the programme faces significant headwinds, including macroeconomic volatility, FX pressures, high debt levels, competition from Gulf mega-hubs, regional security risks, ageing infrastructure, and regulatory transition challenges. IFC advisory support is therefore crucial to ensure the shift from a fully state-run model to a hybrid PPP is successful, balancing oversight with operational freedom for private operators. Future trends point to Egypt becoming a regional aviation hub, with digitalised airports, smart cargo and passenger systems, expanded tourism capacity, sustainable operations (solar energy, SAF), and increased private capital inflows into retail, MRO, and premium services.
In essence, the Hurghada tender represents more than airport reform; it is a strategic blueprint for transforming Egypt’s aviation sector and national connectivity. With GDP projected at over $406 billion in 2025, a sector contributing more than 5% of the economy, and passenger numbers exceeding 50 million, this initiative could modernise 11 airports, attract investment, strengthen tourism, and bolster Egypt’s long-term economic foundations. Successfully navigating the associated risks would establish one of the most dynamic aviation ecosystems in the Middle East and Africa, redefining efficiency, connectivity, and international influence.
