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The Sovereign Fund of Egypt Unconventional Step to Stimulate the Egyptian Economy

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The Sovereign Fund of Egypt is one of unconventional economic tools created by the Egyptian government in context of seeking to besiege the crisis of governmental hindered and suspended companies. It is a sovereign wealth fund includes state-owned assets in Egypt with a licensed capital of 200 billion EGP. This fund follows the presidency whose law was passed by the Egyptian parliament as submitted by the government in 16th July 2018 after being approved by the Cabinet in April 2018. The law gives the fund’s founder the right to establish sub-funds on his own or in partnership with Arab funds. Although the fund has started its activities, yet questions have been raised about what is the fund and its nature after a number of rumors in regard to the government approval on some amendments on the law of establishing the Sovereign Fund of Egypt which strengthen the fund against any supervision and accountability by any party or body. Yet the Ministry of Planning denied these rumors and assured that the amendments on the law of the Sovereign Fund of Egypt no. 177 of 2018 and approved by the Cabinet on 26th December 2019 mainly aimed at maximizing the fund’s efficiency to manage some state-owned assets without need to transfer its ownership to it. In addition, the amendments come to widen and expand the fund’s objectives to include contribution to sustainable economic development through good usage and management of state-owned assets and funds. Also one competence has been added to the fund’s board to be able to entrust one of the international experienced bodies to evaluate assets in the fund’s records in addition to granting them new privilege in sub-funds or companies in which the fund contributes with ratio of more than 50%. Moreover, the new amendments include refunding taxes on added value paid by sub-funds or companies in which the fund contribute with more than 50% of its capital while the law before did not exempt sub-funds and companies in which the fund contributes from all taxes and fees except dividends.     

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