Hala Al-Saeed, Egypt’s Minister of Planning, commented when it was mentioned that the sovereign Egypt Fund will be created in order to sell the state’s assets or businesses that were owned by it.
The minister explained, at the Egypt Economic Conference, on its second day, today, Monday, that Egypt established the sovereign fund with the approval of President Sisi, in order to enhance investment and manage Egypt’s investments better.
In addition to the other oil-producing nations that followed in the development of sovereign funds, Kuwait was the first nation in the world to establish a sovereign fund in more than 50 years in order to maximise the return on resources based on oil.
According to the Minister of Planning, there are various types of investment funds, including one that resembles the Egyptian sovereign fund. There are also funds for asset management and savings management, as well as 170 funds worldwide, including the Norwegian sovereign fund, which is currently the biggest sovereign fund in the world.
She pointed out that the most prominent funds in the world continue primarily in the infrastructure, then in the field of oil, noting that the Egyptian sovereign fund is aimed at maximizing the Egyptian wealth, for future generations, through the management of assets and achieving the best profit from them and studying the best use of government assets, and offering it to the private sector and taking a minority stake in private sector businesses to ensure him that his money is safe.
Al-Saeed stressed that the fund permits investments in assets that the state has not been successful in managing or successful assets to maximise investments in it. We established several sub-funds to maximise investments in different sectors, including the fund that we created weeks ago to help companies get ready for the public offering process, making the total number of sub-boxes 5 boxes.
The sovereign Egypt Fund was established under difficult conditions during the Korona pandemic period, but it was successful in luring investors over the past year. It dealt with 10 large-scale projects, and for every pound that is allocated to the fund, it receives 10 pounds. As of now, the fund has drawn in investments totaling 15 pounds.
The Egyptian Minister stressed that the state aims to raise the value of the state -owned assets, the good management of the state -owned assets, and maximizing the return from it, in several ways, including giving the administration’s right to an investor from the private sector, or entering a minority share in investing with the company, to raise the production of the state -owned asset, With the improvement in output and its contribution to GDP, one of the assets, which was once valued at 2 billion pounds, is now worth 5 billion pounds.
The Minister of Planning explained the reason for the delay in government recommendations as being due to the impact of the international financial markets and the stock price that will be provided, which was not the actual price of the company.
from Cairo 24.
Did Egypt establish its sovereign fund with the intention of selling its assets?
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