Egypt adopts law establishing country’s sovereign wealth fund

Egypt’s Minister of Planning Hala El-Saeed said that the law on establishing the country’s sovereign wealth fund is being put into effect.

In July, Egypt’s House of Representatives passed a law presented by the government to set up the sovereign wealth fund to manage state companies. It was subsequently ratified by the president.

The system laying out the fund’s tasks and the appointment of its chairman, advisory board and general assembly are being put into effect, El-Said said.

According to the new law, the Egypt Fund will be worth  200 billion Egyptian pounds and will be headquartered in Cairo.

The law approves  5 billion start-up capital for the fund, with 1 billion pounds to be transferred immediately from the treasury.

Deputy Minister of Planning Ahmed Kamali said that the government will have no direct interference with the fund, to avoid any political influence, as it will be completely separate from governmental funding.

He pointed out that the fund is mainly directed to invest in inactive government assets inside or outside Cairo, without requiring a certain share for the government.

The fund will focus on fields like petrochemicals, mining, tourism and pharmaceutical industries.