Egypt Independent

Egypt to set up sovereign wealth fund



 

The Egyptian parliament approved a draft law on Monday set to establish a sovereign wealth fund called the “Misr Fund” (Egypt Fund) according to a statement published on the parliament’s official website.

The new law states that the Fund’s capital and the issued capital will be LE 200 billion and LE 5 billion respectively, collected from the public treasury. The primary source of the fund resources would be the assets base, which the fund will invest in cooperation with the private sector.

A report released by a joint committee, including the committees of Strategy and Budget and the Bureau of the Economic Affairs at the Egyptian Parliament, states that the new fund will be utilized to balance the nation’s financial and administrative powers.

It will also manage the flexibility and speed of decisions made by economic entities.

The establishment of the Fund comes in line with the Egyptian government’s goal to developing Egypt’s assets and natural resources in a sustainable manner, so that the value of these resources can be maximized by future generations.

The Accountability State Authority (ASA) and another auditor will revise the fund’s accounts.

This step follows the approach of a large number of countries in the world which have established sovereign funds to manage their surpluses and secure the rights of future generations.

According to the Sovereign Wealth Fund institute (SWF), the value of Arab sovereign wealth funds reached to $ 2.95 trillion in June.