Egypt’s Many Public Administration Transitions: Reform Vision and Implementation Challenges

Factors Influencing Performance Management of Non-Equity Joint Ventures in the Oil Sector

“…In the context of the Egyptian petroleum industry, joint ventures between the international oil company and the government (the national oil company) are formed as a non-equity joint venture due to the country legal and institutional framework (Tong et al, 2008;Al-Emadi, 2010). The equity and non-equity-based partnerships in Egypt are governed by the country's legal system derived from its political and economic socialist heritage (Youssef, 1994;Barsoum, 2017). The equity-based joint ventures are structured to allow the foreign investors to control a maximum of (49%) of the shares, and the remaining shares (51%) are under the control of the Egyptian/local partner (Zoubir, 2000).…”

“…The petroleum joint ventures in Egypt are operating under the economic and political environment of the country. The country is suffering from higher inflation rates and currency devaluation against the US dollars (Al-Araby, 2014; Ibrahim, 2015;Barsoum, 2017). This is likely to have an impact on the political and legal systems of the country.…”

“…This thesis is combining three main contexts; Egypt, the petroleum industry, and the joint venture company. Prior to 1952, Egypt, as a state was a kingdom until a military upheaval, supported by the Egyptian public, overthrown the monarchy and declared the 'Egyptian republic' in 1953 (Barsoum, 2017). In the aftermaths, Egypt's political and economic systems have changed from a free market economy to a socialist system (Bhuiyan, 2015;Barsoum, 2017).…”

“…Prior to 1952, Egypt, as a state was a kingdom until a military upheaval, supported by the Egyptian public, overthrown the monarchy and declared the 'Egyptian republic' in 1953 (Barsoum, 2017). In the aftermaths, Egypt's political and economic systems have changed from a free market economy to a socialist system (Bhuiyan, 2015;Barsoum, 2017). The businesses were nationalised, and the government controlled most of the industries, including the petroleum industry to protect the country's sovereignty over its natural resources (Al-Emadi, 2010; Bhuiyan, 2015).…”

“…Hence, they would follow the objectives of the government partner without consideration of the objectives of the investor (Pearce, 1997). The objectives of government are focused on increasing the production levels to subsidise the domestic market and satisfy the social interests of the country's population (Youssef, 1994;Barsoum, 2017). That is a valid objective, however, other crucial business objectives such as the quality of production and return on investment are ignored in favour of the political/social considerations (Youssef, 1994).…”