CAIRO – 31 July 2018: The Egyptian government contracted with an advisory consortium, including the offices of Hany Sarie el-din & Partners, Price water-house Coopers and Baker McKenzie to prepare the basic regulations of the Sovereign Fund.
This step came days after the House of Representatives approved the law regulating the fund.
Minister of Planning Hala el-Saeed said that the consortium is currently preparing the basic regulations of the Sovereign Fund, and will end its work within weeks, according to Al-Mal newspaper.
Previously, the Parliament approved a bill on establishing a sovereign wealth fund with a capital of LE 22 billion ($11.16 billion).
“The notion of establishing a sovereign fund came late,” said Parliament Speaker Ali Abdel-Aal, adding that such funds are very important for the Egyptian economy.
According to the Sovereign Fund Law, the Basic Law shall be issued upon the Prime Minister’s decision, and the proposal of the competent minister, after the approval of the Council of Ministers and within 60 days from the date of implementation of the provisions of the law.
The fundamental regulations specify the mechanisms for increasing the fund’s capital, whether in cash or in-kind, and mechanisms for disposition of assets, plans and annual reports.
It also sets rules for establishing sub-funds, assigning them to specialized companies or institutions, and controls areas of investment.
In April, the Egyptian Cabinet approved a draft law to establish a sovereign wealth fund to manage state assets with an issued and paid capital of LE 5 billion.
The fund will seek to attract domestic and foreign investment and build on the economic reforms launched by Egypt in 2016, including the flotation of the currency, cutting energy subsidies and introducing new taxes to cut the budget deficit, according to an earlier official statement.
Planning Minister Saeed added that she asked the World Bank to provide technical support for the new fund on the sidelines of her participation in the United Nations meetings.
Regarding the lack of control over the fund, she said that the law stipulates that the Central Bank of Egypt and the Financial Supervision Authority supervise the fund.