After the new amendments.. Learn about the importance of Egypt’s sovereign fund and the most prominent sovereign funds in the world
Countries around the world are seeking to enhance their economic capabilities and attract investments to achieve sustainable development in light of the rapidly changing world in which we live.
Here comes the role of the Sovereign Fund of Egypt, which was established in 2018 to be the cornerstone of Egypt’s modern economic strategy.< /p>
The fund aims to invest the state’s assets in the best possible way to attract local and international investors and drive the economy towards a more prosperous future through a multi-sectoral investment approach that is consistent with Egypt’s Vision 2030.
Recently, members of the Board of Directors announced Representatives approved in principle the draft law submitted by the government to amend some provisions of Law No. 177 of 2018 establishing the Sovereign Fund of Egypt, stressing that this fund has become among the best 50 sovereign funds in the world. The draft amendment aims to grant the Prime Minister the discretion to determine the competent minister, which ensures periodic follow-up of the Fund’s work and the achievements it achieves in accordance with the terms of reference assigned to it.
Establishment and sectors of the Sovereign Fund of Egypt
The Sovereign Fund of Egypt was established in 2018 pursuant to Law No. 177, and aims to create partnerships with local and foreign investors from the private sector. The Fund works To design unique investment products to exploit state-owned assets in the best possible way. The fund includes several sectors to ensure comprehensive benefit from all state facilities, including:
1- The Egypt Sub-Fund for Tourism, Real Estate Investment, and Antiquities Development
The Egypt Sub-Fund for Tourism, Real Estate Investment, and Antiquities Development was established by decision Board of Directors No. 5. The fund aims to develop tourism and real estate investment by providing innovative investment services and products that meet market needs and fill existing gaps.
Guiding Principles
– Innovation and innovation by providing new services and investment products.
– Applying international standards and advanced technology.
< p>– Partnership with private sector investors.
– Highlighting Egypt as a global destination with ancient history and culture.
– Reviving ancient cities and restoring the fragrance of history.
– Reuse And sustainability to achieve economic gains and protect heritage.
– Leadership in preserving historical and architectural heritage.
2- Egypt Sub-Fund for Facilities and Infrastructure
This fund was established in August 2020 pursuant to Board of Directors Resolution No. 4, and works to exploit existing assets in the fields of transportation, logistics, renewable energy, water treatment and desalination, green hydrogen, digital infrastructure, and traditional energy.
< /p>
3- Egypt Sub-Fund for Health Services and Pharmaceutical Industries
This fund was established in August 2020 pursuant to Board of Directors Resolution No. 6. The fund aims to increase the number of available beds, improve the quality of health care services, and develop Private sector investments outside Cairo, and the development and application of technology in health care services.
4- Egypt Sub-Fund for Financial Services and Digital Transformation
This fund was established in August 2020, pursuant to Board of Directors Resolution No. 7, and aims to support the country’s transition to the digital economy, accelerate the financial inclusion process, drive the growth of small and medium enterprises, and develop innovative financial products.
5- Egypt Sub-Fund for Asset Management and Restructuring
This fund was established in September 2022 pursuant to Board of Directors Resolution No. 8, and aims to enable institutional investors to invest in partially or completely state-owned companies before offering them for public subscription.< /p>
Leadership of the Sovereign Fund of Egypt
The Sovereign Fund of Egypt operates under a robust governance framework that ensures that the fund’s operations and procedures comply with best practices in the sector. The fund relies on key criteria that include auditing, membership in the Global Forum of Sovereign Wealth Funds, and compliance with the Santiago Principles. The Fund is led by the General Assembly, headed by Prime Minister Dr. Mostafa Madbouly, and includes a group of experts and ministers.
The largest sovereign funds in the world
Sovereign funds generally occupy a prominent position in the global economy thanks to their ability to manage and invest billions of dollars in assets. The 10 largest sovereign funds in the world are as follows:
1- The Investment Management of the Central Bank of Norway (NBIM) tops the list of the largest sovereign funds in the world with an asset value of $1.548 trillion.
  2- China Investment Corporation (CIC) with a value of $1.24 trillion trillion.
3- State Administration for Foreign Exchange of China (SAFE IC) with a value of $1.082 trillion
4- Abu Dhabi Investment Authority (ADIA) with assets amounting to $892 billion.
5- The Saudi Public Investment Fund (PIF) with a value of $861 billion.
6- The Government of Singapore Investment Corporation (GIC) with a value of $769 billion. .
7- The Kuwait Investment Authority (KIA), with a value of $769 billion.
8- The Qatar Investment Authority (QIA), with a value of $510 billion.
9- Investment Corporation of Dubai (ICD) worth $341 billion.
10- "Temasek" In Singapore, worth $288 billion.
A promising future for the Sovereign Fund of Egypt
In a short period, the Sovereign Fund of Egypt has become among the top 50 sovereign funds in the world, and is working to achieve sustainable economic development through Attracting investments and implementing structural reforms. The fund seeks to maximize the value of state-owned assets, achieve attractive returns for investors, and support the Egyptian economy to become more diversified and sustainable.
Amendments to the law on the Sovereign Fund of Egypt are a qualitative shift in the Egyptian economy
Economist Professor Hani Aboul Fotouh said: “The amendments approved by the House of Representatives to the law establishing the Sovereign Fund of Egypt For Investment and Development represents a qualitative shift in the Egyptian economic scene.
Aboul Fotouh added that these amendments give the Fund greater flexibility in making investment decisions, allowing it to respond quickly to available investment opportunities and deal effectively with global economic challenges. It also contributes to creating a more attractive investment environment for foreign investors, which will enhance the flow of foreign direct investments into Egypt and provide the foreign currencies necessary to finance development projects. In addition, the amendments will allow the Fund to diversify funding sources, reducing reliance on traditional sources and alleviating pressures on the state’s general budget.
Aboul Fotouh indicated that the investments attracted by the Fund are also expected to contribute to creating job opportunities. New for young people, which contributes to reducing unemployment and improving the standard of living for citizens. The amendments will improve the efficiency of using government assets by transferring them to the Fund and managing them in a more effective manner, which will enhance our ability to achieve sustainable economic development.
