23 June 2024 12:40 PM

Sovereign fund of Egypt

Thursday، 20 October 2022 - 11:41 PM

The Sovereign Fund of Egypt was established by Law No. 177 of 2018 and its statute was issued in February by Prime Minister Decree No. 555 of 2019.

The fund is managed independently, through distinguished cadres from the financial and business sector.

Fund Objectives

1- Contributing, alone or with others, to the establishment of companies or to the increase of their capital.

   2 - Investing in securities listed and non-listed in the stock market, debt instruments and other securities inside or outside the Arab Republic of Egypt.

   3- Borrowing, obtaining credit facilities, issuing bonds, financing instruments and other debt instruments.

Fund Board of Directors

The Fund’s Board of Directors consists of a non-executive chairman who is the Minister of Planning and Economic Development, the membership of the Fund’s Executive Director, and representatives from the Ministry of Planning, the Ministry of Finance, the Central Bank of Egypt, and the General Authority for Investment and Free Zones, in addition to seven independent experienced members.

Affiliate Funds

Egypt Sub-Fund for Financial Services and Digital Transformation.

Egypt Sub-Fund for Utilities and Infrastructure.

Egypt Sub-Fund for Tourism, Real Estate Investment and Antiquities Development.

Egypt Sub-Fund for Health Services and Pharmaceutical Industries.

Nature of fund's work

The nature of the work of the Sovereign Fund of Egypt is based on developing untapped assets, by entering into partnerships with the private sector, and reinvesting the achieved financial surpluses. The fund aims to achieve sustainable development and preserve the rights of future generations by maximizing the exploitation of those assets.

The fund operates through a special law that allows the formation of investment partnerships that allow it to create investment opportunities in a unique group of assets for investors and support the government's role in implementing structural reforms, which leads to increased economic growth in various sectors.

The Sovereign Fund of Egypt operates in accordance with the best international practices in all respects starting from its focus on clear and disciplined investment to its governance of management. The fund is supervised by a board of directors in addition to a general assembly whose majority of members are from the private sector.

Egypt sovereign fund portfolio

  It includes many assets such as the Tahrir Complex building, the Ministry of the Interior, the National Party building, the land and buildings of the exploration city, and the Cosmic Village building in the Sixth of October City, as well as the land and buildings of the Nasser Institute annex, and the land of the zoo in Tanta, according to the decree of President Abdel Fattah Al-Sisi, stipulating the demise of the capacity of public benefit from a number of lands and real estate public property of the state, and transferring them to the ownership of the Egyptian Sovereign Fund, noting that there are steps that have been taken to put forward a large number of these projects.

The portfolio includes a number of projects, including: water desalination and treatment plants, power stations, a project for logistical chains to serve e-commerce, a project for stores of food commodities, a project for strategic stores for medical products and devices, as well as investment in the education sector, adding: Egypt's Sovereign Fund ranked 41st among the 100 global sovereign funds in terms of asset value in the first quarter of 2021, after ranking 43rd in 2020 out of 93 global funds.

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