Has Egypt set up its sovereign wealth fund to sell state assets?

Egyptian Planning Minister Hala Al-Said reacted to talk of Egypt setting up a sovereign wealth fund to sell off state-owned assets or companies it owns.

On the second day of the Egyptian Economic Conference, today Monday, the minister explained that Egypt has established the Sovereign Fund with President Sisi’s approval to promote investment and better manage Egypt’s investment.

She continued: Kuwait was the first country in the world to establish a sovereign wealth fund more than 50 years ago to maximize the return on oil-dependent resources, and other oil-producing countries have followed suit in establishing sovereign wealth funds.

The planning minister added that there are forms of investment funds, including an investment fund form that takes the form of an Egyptian sovereign fund, as well as savings management funds and asset management funds, and there are 170 funds in the world. , and the Norwegian Sovereign Fund is the largest sovereign fund in the world at present, as well as the Kuwait Fund among the large funds.

She pointed out that the most famous funds in the world are still working first in infrastructure and then in oil, noting that the Egyptian Sovereign Fund aims to maximize Egypt’s wealth for future generations by managing assets and getting the maximum return from them, studying the best using public assets and offering them to the private sector Entering a minority stake in investments in the private sector in order to convince him of his funds.

Al-Saeed confirmed that the fund allows investment in assets that the state has failed to manage or in successful assets to maximize investment in them, and we have created several sub-funds to maximize investment in various sectors, including a fund that we created in a few weeks . back to prepare the companies for the public offering, bringing the number of sub-funds to 5 boxes.

And she continued: The Egypt Sovereign Fund was launched under adverse conditions during the coronavirus pandemic, but the fund managed to attract investments over the past year, and it has been involved in 10 giant projects, and for every £1 billion allocated to the fund, it receives £10 billion in return, and the fund has so far succeeded in attracting investments of £15bn.

The Egyptian minister stressed that the state is seeking to increase the value of state assets, better manage state assets and maximize the return on them in several ways, including giving control to a private investor or becoming a minority. participation in investments with the company to increase the production of state assets. One of the assets was LE 2 billion and is now worth LE 5 billion, with improved production and its contribution to GDP.

Regarding the delay in government proposals, the planning minister said that this was due to the influence of global financial markets and the price of shares to be offered. This did not represent the real value of the company.

Source: Cairo 24