The Egyptian government has approved the proposed listing of state-owned oil and gas contractor Engineering for the Petroleum & Process Industries (Enppi) on the local stock market.

A cabinet spokesperson has confirmed reports that the government has approved the 24 per cent listing of the engineering, procurement and construction (EPC) contractor.

As it stands, state-owned Egyptian General Petroleum Corporation (EGPC) is the principal shareholder of the firm, owning 97 per cent of the total shares.

The local NI Capital, affiliated to National Investment Bank, will evaluate the company’s value ahead the initial public offering (IPO) process, the cabinet spokesperson told MEED.

NI Capital is a sovereign privately managed financial institution set up to lead the transformation and growth of the Egyptian economy. The company acts as a consulting authority for the government and manages governmental investment funds.

The Egyptian presidency in January last year announced it planned to sell shares of “successful” government-owned companies and banks to the public, the first such move since 2005, when it offered shares in Telecom Egypt, Sidi Kerir Petrochemicals Company and Alexandria Mineral Oils Company (AMOC).

The state owns vast swathes of the economy, including three of the largest banks, much of the oil industry and huge parts of the country’s real estate. However, the economy has struggled since the popular uprising to oust former president Hosni Mubarak in 2011. Political instability has driven foreign investors and tourists away and growth is under pressure due to long-standing foreign currency issues, which have deterred fresh investments in the country.